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The sector also faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and global risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products drawing in new capital.
Trading activity remained constant, with average 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 place in the secondary market, enabling financiers to adjust positions without substantial main creations or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the region stays resistant and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on international luxury and consumer 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 introduce in April pending a final approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and rates during the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining positive growth momentum in the last few years. While conflicts in the broader area and global economic unpredictability stay a structural restraint, GCC countries have actually so far limited their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive total conditions.
How to Be Successful in Saudi Arabia's Competitive Center LandscapeThe IMF's World Economic Outlook (October 2025) tasks worldwide 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 contrast, a 4.44.5 percent GCC expansion would position the region 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 reasonably high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually 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 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 remain main to sustaining this pattern. Policy measures aimed at bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development 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 comparison, a 4.44.5 percent GCC growth would position the region 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 fairly high-growth pocketprovided that local danger conditions remain included 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 rise as federal governments broaden financial investment in services, infrastructure, 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Reimagining the UAE Office for the 2026 Skill PoolPublic-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a supportive function in 2026.
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