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The sector likewise faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Struggled for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items attracting brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without considerable main productions or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on worldwide luxury and customer 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 global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and rates during the quarter, it has actually driven more volume and interest in local assets.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable growth momentum over the last few years. While conflicts in the larger region and worldwide economic uncertainty remain a structural restriction, GCC nations have actually up until now limited their effect on domestic economic efficiency through strong financial positions, policy connection, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth 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.
How to Secure a Competitive Advantage in 2026The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 contrast, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand investment in services, facilities, 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 technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes 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 development forecasted 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) jobs international growth relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position the area 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 danger conditions stay included and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.
How to Secure a Competitive Advantage in 2026Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful role in 2026.
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