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The sector also faced wider macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items attracting new capital.
Trading activity stayed 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 occurred in the secondary market, enabling financiers to adjust positions without substantial main creations or redemptions. While current geopolitical events have actually led to more financial pressure on GCC countries, the area remains durable and well capitalized to deal with the situation.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on worldwide luxury and consumer 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 release in April pending a final approval from ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and prices during the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable growth momentum in the last few years. While conflicts in the broader region and worldwide financial uncertainty stay a structural restraint, GCC countries have up until now restricted their influence on domestic economic performance through strong financial positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth 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 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 danger conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, 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 technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps aimed at bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive function in 2026.
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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth reducing 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 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 reasonably high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand financial 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 increasing investment in technology and AI-related infrastructure.
Boosting Dubai Industrial Growth via Strategic ExcellencePublic-sector financial investment and reform remain central to sustaining this trend. Policy steps focused on drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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