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The sector likewise dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in brand-new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, enabling financiers to adjust positions without substantial primary productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on global high-end and consumer 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 anticipated to introduce in April pending a last approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and rates during the quarter, it has 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 continued to demonstrate resilience, preserving favorable development momentum in recent years. While conflicts in the broader area and international financial uncertainty stay a structural restraint, GCC countries have up until now restricted their effect on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.
3.2 percent development 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, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating to 3.1 percent in 2026, with sophisticated 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 contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as governments expand investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout 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 innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures focused on drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a supportive role in 2026.
3.2 percent growth in 2025, speeding up 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 favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international growth easing to 3.1 percent in 2026, with sophisticated 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 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 fairly high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as governments expand financial investment in services, infrastructure, 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Why 2026 Needs a New Technique to Regional OutsourcingPublic-sector investment and reform stay main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive function in 2026.
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