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The sector likewise faced wider macro headwinds, consisting of a more cautious policy background in China and international risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as evaluation pressures and global rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items attracting brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, making it possible for financiers to adjust positions without substantial primary creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in regional properties.
Despite continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining favorable development momentum in the last few years. While disputes in the larger region and global financial uncertainty remain a structural restriction, GCC countries have up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, 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, enhancing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive role in 2026.
3.2 percent development 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, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments expand investment in services, infrastructure, and technology. 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
How Shared Services Are Driving Digital Improvement in the GulfPublic-sector investment and reform stay main to sustaining this pattern. Policy measures aimed at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive function in 2026.
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