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The sector likewise faced broader macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items attracting brand-new capital.
Trading activity stayed steady, with typical 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 taken location in the secondary market, making it possible for financiers to change positions without substantial main creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on worldwide high-end and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to release in April pending a final approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect 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 local possessions.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving favorable development momentum in the last few years. While conflicts in the broader region and worldwide economic unpredictability stay a structural restraint, GCC countries have up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to increase 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) projects global 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 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat 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 continued to rise as federal governments expand investment in services, facilities, 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 rising investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging function in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international development relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden financial 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, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
How to Align Outsourcing with 2026 Sustainability GoalsPublic-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive role in 2026.
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