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The sector likewise faced wider macro headwinds, including a more cautious policy backdrop in China and international risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the many part, especially those connected to carbon and high-growth innovation, as evaluation pressures and international rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of items bring in brand-new capital.
Trading activity stayed constant, with average 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, enabling investors to adjust positions without significant primary creations or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the area stays resilient and well capitalized to handle the circumstance.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on international 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 expected to introduce in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and rates throughout the quarter, it has driven more volume and interest in regional assets.
Regardless of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining positive growth momentum over the last few years. While conflicts in the larger region and international financial uncertainty stay a structural restriction, GCC nations have actually so far limited their impact on domestic economic efficiency through strong fiscal positions, policy connection, and sustained 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 predicted to rise 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 international development relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position 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 local threat conditions stay consisted of and reform momentum holds.
Data 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 rise as federal governments broaden investment in services, infrastructure, and innovation. 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy measures focused on drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate 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 predicted 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) jobs global 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 comparison, a 4.44.5 percent GCC expansion would position the region 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 reasonably high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.
Data 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 governments broaden financial 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 financial investment in innovation and AI-related infrastructure.
The Function of Mental Health in UAE Skill ManagementPublic-sector financial investment and reform remain central to sustaining this pattern. Policy steps targeted at bring in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
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