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The sector also faced broader macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise had a hard time for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products attracting new capital.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, making it possible for financiers to change positions without substantial primary productions or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the area stays resilient and well capitalized to deal with the scenario.
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 revealed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and rates during the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping positive growth momentum recently. While conflicts in the wider area and international economic uncertainty stay a structural restraint, GCC nations have actually so far limited their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable overall conditions.
Maximizing Corporate Growth Via Operational InnovationThe IMF's World Economic Outlook (October 2025) tasks global growth easing 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 comparison, a 4.44.5 percent GCC growth would place the region 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 fairly high-growth pocketprovided that local risk conditions remain contained 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 governments expand financial investment in services, infrastructure, and technology. 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 innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy measures intended at attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful role in 2026.
The World Bank, on the other hand, tasks 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 favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth 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 contrast, a 4.44.5 percent GCC growth would put 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 risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand investment in services, facilities, 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, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Maximizing Corporate Growth Via Operational InnovationPublic-sector investment and reform stay main to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
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