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The sector also faced wider macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise had a hard time for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of products attracting new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, allowing financiers to change positions without significant main creations or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the area stays resilient and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and prices throughout the quarter, it has driven more volume and interest in local properties.
Despite ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining positive development momentum in the last few years. While conflicts in the larger area and global economic unpredictability remain a structural constraint, GCC nations have up until now restricted their impact on domestic economic performance through strong financial positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, accelerating 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, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects global growth 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, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Information 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 rise as governments broaden financial investment in services, infrastructure, and innovation. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects 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 comparison, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand investment in services, infrastructure, 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 increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy measures aimed at attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.
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