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The sector likewise dealt with broader macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs also struggled for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and international rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing investors to change positions without significant main productions or redemptions. While recent geopolitical occasions have led to more monetary pressure on GCC countries, the area remains resilient and well capitalized to deal with the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on international high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and rates throughout the quarter, it has actually driven more volume and interest in regional properties.
In spite of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping positive growth momentum in recent years. While disputes in the wider area and global economic uncertainty stay a structural restraint, GCC countries have actually up until now limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual 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 towards more favorable total conditions.
The Benefits of Strategic Excellence in the GCCThe IMF's World Economic Outlook (October 2025) jobs international development alleviating 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 expansion would place the region 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 relatively high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments expand investment in services, infrastructure, and innovation. 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 financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development easing to 3.1 percent in 2026, with sophisticated 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 region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly 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 currently account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden financial investment in services, facilities, 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures aimed at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a supportive function in 2026.
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