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The sector likewise faced broader macro headwinds, including a more careful policy background in China and worldwide risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the a lot of part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually happened in the secondary market, allowing financiers to change positions without substantial primary productions or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the area stays resistant and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on worldwide luxury 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 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 conflict has impacted sentiment and costs throughout the quarter, it has actually driven more volume and interest in regional assets.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping positive development momentum in recent years. While conflicts in the wider area and global economic uncertainty stay a structural constraint, GCC countries have so far limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and sustained investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.
Evaluating the Potential of Saudi Arabia's Emerging Urban HubsThe IMF's World Economic Outlook (October 2025) projects international development easing to 3.1 percent in 2026, with advanced 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 slightly 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 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 continued to increase as federal governments broaden investment in services, infrastructure, and technology. 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 financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful function in 2026.
3.2 percent growth 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, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development easing 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 area 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 relatively high-growth pocketprovided that local danger conditions stay consisted of 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 continued to rise as federal governments broaden investment in services, infrastructure, and technology. 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 increasing investment in innovation and AI-related infrastructure.
Evaluating the Potential of Saudi Arabia's Emerging Urban HubsPublic-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
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