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The sector also faced more comprehensive macro headwinds, consisting of a more mindful policy background in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the a lot of part, especially those connected to carbon and high-growth innovation, as valuation pressures and international rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, showing selective allowance rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products attracting brand-new capital.
Trading activity stayed constant, with average 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, allowing financiers to adjust positions without substantial main productions or redemptions. While current geopolitical events have actually resulted in more financial pressure on GCC nations, the area stays durable and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on global high-end 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and rates throughout the quarter, it has actually driven more volume and interest in local assets.
In spite of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving positive growth momentum in the last few years. While conflicts in the broader area and international economic unpredictability stay a structural restraint, GCC countries have so far restricted 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 growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs 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 growth would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth alleviating to 3.1 percent in 2026, with advanced 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 position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as governments expand financial 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Building Brand Authority in Saudi Arabia's New Economic ZonesPublic-sector financial investment and reform stay main to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play an encouraging role in 2026.
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