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The sector also dealt with broader macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs likewise struggled for the a lot of part, especially those linked to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, enabling investors to adjust positions without substantial primary creations or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the region remains resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end 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 launch in April pending a final approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and rates during the quarter, it has driven more volume and interest in local properties.
In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining positive development momentum in current years. While conflicts in the wider area and worldwide financial uncertainty stay a structural restriction, GCC countries have up until now limited their influence on domestic economic efficiency through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
Charting GCC Corporate Strategy in 2026The IMF's World Economic Outlook (October 2025) jobs global development 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 put 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 fairly high-growth pocketprovided that local risk conditions remain 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 total GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, 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, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy procedures intended at bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful function 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 similarly sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development 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 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, enhancing the GCC's status as a relatively 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 currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand financial investment in services, facilities, and innovation. 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 technology and AI-related infrastructure.
Charting GCC Corporate Strategy in 2026Public-sector investment and reform stay main to sustaining this pattern. Policy procedures targeted at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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