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The sector also faced more comprehensive macro headwinds, including a more mindful policy background in China and international risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the many part, particularly those linked to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items bring in brand-new capital.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, making it possible for financiers to adjust positions without significant main productions or redemptions. While recent geopolitical events have actually resulted in more financial pressure on GCC countries, the area stays resistant and well capitalized to handle the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on worldwide high-end and customer 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 launch in April pending a last approval from ADX.
Q1 2026 revealed some development connecting 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 rates throughout the quarter, it has driven more volume and interest in regional possessions.
In spite of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining favorable development momentum over the last few years. While disputes in the wider region and worldwide economic unpredictability stay a structural restraint, GCC countries have up until now restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained financial 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
How to Navigate the Cultural Nuances of Saudi EntryThe IMF's World Economic Outlook (October 2025) projects global growth easing to 3.1 percent in 2026, with advanced 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 put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional threat 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 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a supportive role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating 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 comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful function in 2026.
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