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The sector also faced more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs also struggled for the many part, particularly those connected to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items attracting new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually happened in the secondary market, making it possible for financiers to adjust positions without substantial primary developments or redemptions. While current geopolitical events have actually resulted in more monetary pressure on GCC nations, the area remains resilient and well capitalized to deal with the situation.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on global high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and rates throughout the quarter, it has driven more volume and interest in regional properties.
Despite ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining positive development momentum over the last few years. While conflicts in the larger area and global economic uncertainty remain a structural restriction, GCC countries have so far limited their effect on domestic financial performance through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a supportive role in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Actionable Tips for Mastering the Regional LandscapePublic-sector financial investment and reform stay central to sustaining this pattern. Policy measures aimed at drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a supportive function in 2026.
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