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The sector likewise dealt with wider macro headwinds, consisting of a more careful policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, enabling investors to adjust positions without considerable primary creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international high-end and consumer brands. ETFs by the CMA for cross-listing on 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 belief and rates throughout the quarter, it has actually driven more volume and interest in local properties.
Despite continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining favorable growth momentum in the last few years. While disputes in the wider region and global financial unpredictability stay a structural restraint, GCC nations have actually so far restricted their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent growth 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 overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving 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 comparison, a 4.44.5 percent GCC growth would put the area 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 reasonably high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy steps targeted at bring in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful function in 2026.
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 favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing 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 position the area materially ahead of the world average and slightly 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.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
The Power of Versatile Work in Retaining UAE SkillPublic-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive role in 2026.
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