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The sector likewise dealt with broader macro headwinds, including a more mindful policy background in China and international risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity stayed consistent, with typical 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 place in the secondary market, allowing financiers to adjust positions without considerable main productions or redemptions. While current geopolitical events have resulted in more financial pressure on GCC countries, the region stays resistant and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global high-end and consumer brand names. 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 associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and costs during the quarter, it has driven more volume and interest in local possessions.
Despite continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving positive growth momentum over the last few years. While conflicts in the wider area and international financial uncertainty remain a structural restraint, GCC nations have actually up until now restricted their influence on domestic financial efficiency through strong financial positions, policy continuity, and continual investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable overall conditions.
Drawing In Worldwide Skill to the UAE's Flourishing Digital EconomyThe IMF's World Economic Outlook (October 2025) jobs worldwide development 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 expansion would place 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 reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
3.2 percent growth in 2025, accelerating 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 toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing 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 a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Information 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 rise as federal governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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.
Are Saudi Giga-Projects Changing Your Market Entry Reasoning?Public-sector investment and reform stay main to sustaining this trend. Policy measures intended 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 lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive role in 2026.
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