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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 higher energy rates. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market participation. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items 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. Many activity appears to have taken place in the secondary market, allowing financiers to change positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on international luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and prices during the quarter, it has driven more volume and interest in regional possessions.
Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving positive growth momentum in recent years. While disputes in the broader region and global financial uncertainty stay a structural restriction, GCC nations have so far limited their effect on domestic financial efficiency through strong fiscal positions, policy connection, and sustained investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating 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 contrast, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat 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 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 rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy steps intended at drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected 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) jobs global growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, 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 relatively high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors currently 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 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 financial investment in innovation and AI-related infrastructure.
Comparing Future-Focused Strategies Against Traditional BusinessPublic-sector financial investment and reform stay central to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging function in 2026.
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