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The sector also faced broader macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise had a hard time for the most part, especially those connected to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items drawing in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have occurred in the secondary market, making it possible for investors to adjust positions without significant primary creations or redemptions. While current geopolitical events have actually resulted in more financial pressure on GCC nations, the area stays resilient and well capitalized to handle the situation.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on international 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 expected to release 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 throughout 2026. While the dispute has affected sentiment and rates during the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving favorable development momentum over the last few years. While disputes in the broader region and global financial uncertainty stay a structural constraint, GCC countries have up until now limited their effect on domestic economic efficiency through strong financial 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 predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
Will the GCC Lead Industrial Growth through 2026?The IMF's World Economic Outlook (October 2025) jobs international growth alleviating 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 growth would position 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 danger 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 continued to rise as governments broaden financial 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy steps 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 decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits 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 forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs international development easing 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 expansion would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy measures focused on bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive function in 2026.
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