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The sector likewise dealt with broader macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise struggled for the most part, especially those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, enabling financiers to adjust positions without considerable primary developments or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC countries, the area stays resistant and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on international high-end and customer 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 revealed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and rates throughout the quarter, it has actually driven more volume and interest in regional possessions.
Despite ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving positive growth momentum in the last few years. While disputes in the larger area and global economic uncertainty stay a structural constraint, GCC countries have up until now restricted their influence on domestic economic performance through strong financial positions, policy connection, and continual financial investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth 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.
Forward-Thinking Corporate Models Within 2026 MarketsThe IMF's World Economic Outlook (October 2025) tasks international growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area 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 reasonably high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a helpful function in 2026.
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, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs global development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Driving Regional Industrial Growth through Operational ExcellencePublic-sector financial investment and reform remain main to sustaining this pattern. Policy steps aimed at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive role in 2026.
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