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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 sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of products attracting new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing financiers to change positions without significant main developments or redemptions. While current geopolitical occasions have actually led to more monetary pressure on GCC nations, the region remains durable and well capitalized to deal with the circumstance.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and prices during the quarter, it has driven more volume and interest in regional properties.
Regardless of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping favorable development momentum in recent years. While conflicts in the broader area and worldwide financial unpredictability stay a structural restraint, GCC nations have actually so far restricted their effect on domestic financial efficiency through strong financial positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, jobs 3.2 percent development 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 typically in 2025, reflecting a shift toward more favorable overall conditions.
The Development of Managed Solutions in the Gulf AreaThe IMF's World Economic Outlook (October 2025) projects 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 contrast, a 4.44.5 percent GCC growth 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.
Information 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 rise as governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this trend. Policy steps aimed at drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive function 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden 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 innovation and AI-related facilities.
Understanding the Nuances of Omani Labor and Tax LawsPublic-sector financial investment and reform remain central to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive role in 2026.
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