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The sector also dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items bring in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, allowing investors to adjust positions without considerable main creations or redemptions. While current geopolitical occasions have actually led to more financial pressure on GCC countries, the region stays resistant and well capitalized to deal with the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on worldwide 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 launch in April pending a final approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and costs during the quarter, it has actually driven more volume and interest in local possessions.
Despite ongoing geopolitical tensions and security dangers throughout 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 area and global economic unpredictability remain a structural restriction, GCC countries have actually so far limited their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
3.2 percent growth 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, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects international 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 growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated 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 forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks global development easing 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.
Information 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 increase as federal governments expand 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 innovation and AI-related facilities.
Actionable Tips for Mastering the 2026 Regional LandscapePublic-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging function in 2026.
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