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The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the most part, especially those linked to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items attracting new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, allowing investors to adjust positions without considerable main productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end 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 anticipated to introduce in April pending a final approval from ADX.
Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and prices throughout the quarter, it has driven more volume and interest in local possessions.
Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping favorable growth momentum over the last few years. While conflicts in the broader region and worldwide financial unpredictability stay a structural constraint, GCC nations have so far limited their impact on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
How UAE Companies Can Win the 2026 War for TalentThe IMF's World Economic Outlook (October 2025) tasks international growth easing 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 contrast, a 4.44.5 percent GCC expansion would put 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 threat conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show 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 financial investment in services, facilities, and technology. 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 investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF 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 towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth reducing 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 contrast, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and somewhat 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 remain contained and reform momentum holds.
Information 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 governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across 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 infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a helpful function in 2026.
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