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The sector also faced wider macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products drawing in brand-new capital.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, making it possible for financiers to change positions without significant main developments or redemptions. While current geopolitical events have led to more monetary pressure on GCC nations, the region stays resilient and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on worldwide luxury and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a final approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and costs throughout the quarter, it has driven more volume and interest in regional possessions.
Despite continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum in current years. While conflicts in the larger region and global economic uncertainty stay a structural restriction, GCC nations have actually so far limited their effect on domestic financial efficiency through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively 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 expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a supportive role in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures intended at bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.
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