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The sector likewise faced wider macro headwinds, consisting of a more mindful policy background in China and global risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products drawing in new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have occurred in the secondary market, enabling financiers to adjust positions without significant primary productions or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC nations, the region stays resistant and well capitalized to deal with the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure concentrated on international luxury 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 release in April pending a final approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and prices throughout the quarter, it has driven more volume and interest in regional possessions.
Despite ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving positive growth momentum over the last few years. While conflicts in the wider area and worldwide economic uncertainty remain a structural restraint, GCC countries have actually so far limited their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth 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.
Maximizing Industrial Growth Via Strategic InnovationThe IMF's World Economic Outlook (October 2025) tasks global growth easing 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 growth would position 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 danger conditions stay 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 actually continued to increase as governments expand investment in services, facilities, 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 increasing investment in technology and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a supportive function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase 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) projects international growth alleviating 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 put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing 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 represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand financial 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 rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures aimed at drawing in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful function in 2026.
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