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The sector likewise dealt with wider macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs likewise struggled for the most part, especially those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items attracting brand-new capital.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have occurred in the secondary market, allowing financiers to adjust positions without considerable main productions or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC countries, the area remains resilient and well capitalized to handle the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on global high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and rates during the quarter, it has actually driven more volume and interest in local possessions.
Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving favorable growth momentum in current years. While conflicts in the larger region and international economic unpredictability stay a structural constraint, GCC countries have actually up until now restricted their impact on domestic economic performance through strong financial positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 towards more favorable general conditions.
Simplifying Regional Processes with Collaborative Shared Service ModelsThe IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving 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 contrast, a 4.44.5 percent GCC expansion would put 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 risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures intended at drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing 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 growth would place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay 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 overall GDP, a share that has actually continued to rise as federal governments expand investment in services, facilities, and technology. 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 investment in technology and AI-related facilities.
Closing the Skills Space in the UAE Labor MarketPublic-sector financial investment and reform remain central to sustaining this pattern. Policy measures aimed at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging role in 2026.
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