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The sector likewise faced broader macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs likewise struggled for the most part, particularly those connected to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in brand-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. Most activity appears to have actually happened in the secondary market, making it possible for investors to adjust positions without significant primary developments or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the region stays resistant and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local possessions.
Despite ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving favorable growth momentum recently. While conflicts in the broader region and global economic unpredictability stay a structural restraint, GCC nations have up until now restricted their impact on domestic financial efficiency through strong financial positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating 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 usually in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international development alleviating 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, infrastructure, 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.
Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. 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 positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth easing 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 contrast, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand financial 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Taking advantage of the Growth Potential of Jeddah's New DistrictsPublic-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful function in 2026.
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