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The sector also dealt with broader macro headwinds, including a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly focused, showing selective allowance rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items drawing in new capital.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have occurred in the secondary market, allowing financiers to change positions without considerable primary creations or redemptions. While recent geopolitical occasions have led to more monetary pressure on GCC nations, the region remains durable and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on international luxury 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and rates during the quarter, it has driven more volume and interest in regional possessions.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, maintaining favorable development momentum over the last few years. While conflicts in the larger area and global financial uncertainty remain a structural restriction, GCC countries have actually up until now limited their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The Advantages of Operational Efficiency for 2026The IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 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 relatively high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand financial investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this trend. Policy measures focused on bring in foreign direct 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 control the development outlook, oil revenues are anticipated to play a supportive role in 2026.
3.2 percent growth in 2025, accelerating 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, reflecting a shift towards more positive general 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 just above 4 percent. On that comparison, 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 local threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand financial investment in services, facilities, 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.
The Advantages of Operational Efficiency for 2026Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging function in 2026.
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