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The sector likewise faced more comprehensive macro headwinds, including a more careful policy background in China and international risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting brand-new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing financiers to adjust positions without considerable main developments or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the area remains durable and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on global high-end and customer 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 expected to introduce in April pending a final approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and prices during the quarter, it has actually driven more volume and interest in regional assets.
Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving positive growth momentum in recent years. While conflicts in the broader area and international financial uncertainty stay a structural constraint, GCC countries have actually up until now restricted their influence on domestic financial performance through strong financial positions, policy continuity, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.
The Shift Towards Regional Excellence in Shared SolutionsThe IMF's World Economic Outlook (October 2025) projects worldwide development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place 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 fairly high-growth pocketprovided that local risk conditions remain consisted of 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 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
3.2 percent growth 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 favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global development easing 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 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial 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 investment in technology and AI-related infrastructure.
The Shift Toward Outcome-Based Outsourcing in the GCCPublic-sector financial investment and reform remain main to sustaining this pattern. Policy procedures aimed at attracting foreign direct financial 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 cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging function in 2026.
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