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The sector also dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs Had a hard time for the many part, particularly those linked to carbon and high-growth technology, as assessment pressures and global rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items attracting new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing financiers to change positions without significant main developments or redemptions. While current geopolitical events have actually led to more financial pressure on GCC nations, the region remains resilient and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure concentrated on international high-end and customer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a final approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and costs during the quarter, it has driven more volume and interest in local properties.
Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping positive development momentum in the last few years. While disputes in the wider area and worldwide financial uncertainty stay a structural constraint, GCC countries have up until now limited their effect on domestic financial performance through strong financial positions, policy connection, and continual investment.
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 towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just 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, strengthening the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful function 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 likewise sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area 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 reasonably high-growth pocketprovided that regional threat 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 total GDP, a share that has continued to rise as federal governments broaden 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.
The Power of Versatile Work in Retaining UAE SkillPublic-sector financial investment and reform stay central to sustaining this pattern. Policy steps intended at attracting foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
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