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The sector likewise dealt with wider macro headwinds, including a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also had a hard time for the most part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products bring in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually occurred in the secondary market, enabling financiers to change positions without considerable primary creations or redemptions. While recent geopolitical events have led to more financial pressure on GCC countries, the region remains resistant and well capitalized to deal with the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused 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 last approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and rates during the quarter, it has driven more volume and interest in regional assets.
Regardless of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping positive growth momentum in current years. While conflicts in the broader region and worldwide financial unpredictability stay a structural constraint, GCC countries have actually so far limited their effect on domestic economic efficiency through strong financial positions, policy continuity, 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 general conditions.
Expert Advice On Managing Regional Market DynamicsThe IMF's World Economic Outlook (October 2025) tasks international growth easing 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 comparison, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional threat conditions stay 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 investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place 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 reasonably high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, 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 financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures intended at bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging role in 2026.
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