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The sector likewise faced broader macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs also struggled for the many part, especially those linked to carbon and high-growth innovation, as appraisal pressures and international rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items bring in 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. Most activity appears to have happened in the secondary market, allowing investors to adjust positions without significant main developments or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC nations, the region remains durable and well capitalized to deal with the situation.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on international luxury 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 launch in April pending a last approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and costs during the quarter, it has driven more volume and interest in regional possessions.
In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping favorable growth momentum in recent years. While disputes in the larger region and global economic unpredictability remain a structural restriction, GCC nations have actually so far limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs global development relieving 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 contrast, a 4.44.5 percent GCC expansion would place 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 fairly high-growth pocketprovided that local risk conditions remain included 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 increase as federal governments expand investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy steps focused on bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region'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.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving to 3.1 percent in 2026, with innovative 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 position the area 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 stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden 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 increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful function in 2026.
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