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The sector also dealt with wider macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in new capital.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually happened in the secondary market, allowing investors to change positions without substantial main creations or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC nations, the region stays durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and rates during the quarter, it has actually driven more volume and interest in local assets.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping favorable development momentum in recent years. While conflicts in the larger area and international economic unpredictability stay a structural constraint, GCC countries have up until now limited their influence on domestic economic performance through strong financial positions, policy continuity, and sustained investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The Change of Shared Providers in a Post-Digital GCCThe IMF's World Economic Outlook (October 2025) tasks worldwide development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy steps focused on bring in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise 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 development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing 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 a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
The Change of Shared Providers in a Post-Digital GCCPublic-sector investment and reform stay central to sustaining this trend. Policy measures aimed at attracting foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a supportive role in 2026.
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