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The sector also faced broader macro headwinds, including a more mindful policy background in China and global risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as valuation pressures and global rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items attracting brand-new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken location in the secondary market, allowing investors to adjust positions without considerable main productions or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on global high-end 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and prices throughout the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping favorable development momentum recently. While disputes in the wider region and global economic unpredictability remain a structural constraint, GCC countries have actually up until now limited their influence on domestic financial efficiency through strong financial 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 predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive general conditions.
Bridging Policy and Operational Performance Across the GulfThe IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 expansion would put the area 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 fairly high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, 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 rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at attracting foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly 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 toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 expansion would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Boosting Regional Manufacturing Expansion InitiativesPublic-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
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