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The sector likewise dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as appraisal pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing financiers to change positions without significant main productions or redemptions. While recent geopolitical events have actually led to more financial pressure on GCC countries, the area stays resistant and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on global 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 showed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and rates throughout the quarter, it has driven more volume and interest in regional assets.
Despite ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping favorable development momentum over the last few years. While disputes in the larger area and global economic uncertainty stay a structural constraint, GCC nations have 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 projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth 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 expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise 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 overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global development relieving to 3.1 percent in 2026, with sophisticated 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 somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, infrastructure, and technology. 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, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.
Future-Focused Operational Models for 2026 MarketsPublic-sector investment and reform remain central to sustaining this trend. Policy procedures targeted 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 lower the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful function in 2026.
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