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The sector likewise faced more comprehensive macro headwinds, including a more cautious policy backdrop in China and international risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs likewise had a hard time for the many part, particularly those linked to carbon and high-growth innovation, as assessment pressures and global rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allowance rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in brand-new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, allowing financiers to change positions without considerable primary creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on international luxury and consumer 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 associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment 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 across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable growth momentum in the last few years. While conflicts in the wider area and global economic uncertainty stay a structural constraint, GCC countries have actually up until now limited their effect on domestic economic performance through strong fiscal positions, policy connection, and continual investment.
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 projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the area 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 fairly high-growth pocketprovided that local 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 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, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected 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 projected to increase 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) tasks global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing 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 regional threat conditions stay consisted of 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 continued to increase as 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 increasing financial investment in innovation and AI-related facilities.
Preparing Your GCC Outsourcing Method for 2026 InterruptionsPublic-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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