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The sector also dealt with broader macro headwinds, including a more mindful policy backdrop 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 linked to carbon and high-growth technology, as appraisal pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products bring in brand-new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, allowing financiers to adjust positions without significant main productions or redemptions. While recent geopolitical events have led to more monetary pressure on GCC countries, the area stays durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure concentrated on international high-end and consumer 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in regional properties.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable development momentum recently. While conflicts in the wider region and global economic uncertainty stay a structural constraint, GCC countries have so far restricted their influence on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more positive overall conditions.
How Does Operational Excellence Essential for Future Expansion?The IMF's World Economic Outlook (October 2025) tasks international development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and slightly 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.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand financial investment in services, infrastructure, and innovation. 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, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy measures focused on attracting foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a supportive function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth relieving 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 contrast, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand investment in services, facilities, 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 financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging function in 2026.
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