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The sector also dealt with wider macro headwinds, consisting of a more careful policy background in China and global risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth technology, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting brand-new capital.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have happened in the secondary market, enabling investors to adjust positions without substantial primary developments or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC countries, the area remains resilient and well capitalized to handle the situation.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global 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 release in April pending a final approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.
In spite of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping positive development momentum recently. While conflicts in the broader region and international financial unpredictability remain a structural restriction, GCC countries have up until now restricted their impact on domestic financial efficiency through strong financial positions, policy continuity, and continual investment.
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 development forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable general conditions.
Driving Growth Through Centralized Gulf Shared Service ModelsThe IMF's World Economic Outlook (October 2025) projects worldwide development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand 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 increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings 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 Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing 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 fairly high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand financial investment in services, facilities, and innovation. 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, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.
Driving Growth Through Centralized Gulf Shared Service ModelsPublic-sector financial investment and reform remain main to sustaining this trend. 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 expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.
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