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The sector likewise faced wider macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the many part, especially those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to change positions without substantial main creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on worldwide high-end and consumer 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 final approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected sentiment and rates during the quarter, it has driven more volume and interest in regional assets.
In spite of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive development momentum in the last few years. While disputes in the wider area and global financial unpredictability stay a structural constraint, GCC nations have actually up until now restricted their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual 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 similarly sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing 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 somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat 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 increase as governments broaden financial investment in services, facilities, 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 increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures focused on bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding 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 control the development outlook, oil earnings are expected to play an encouraging function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international development 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 position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain consisted of 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 increase as federal governments broaden investment in services, infrastructure, and technology. 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 innovation and AI-related infrastructure.
Emerging Strategic Shifts Shaping the 2026 Regional MarketPublic-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a helpful function in 2026.
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