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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also had a hard time for the most part, particularly those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products drawing in brand-new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, allowing financiers to adjust positions without substantial main developments or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused 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 launch in April pending a final approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and rates throughout the quarter, it has actually driven more volume and interest in regional properties.
Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping positive growth momentum recently. While conflicts in the wider region and international economic uncertainty remain a structural restraint, GCC nations have up until now restricted their effect on domestic economic performance through strong financial positions, policy connection, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted 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) projects international development reducing 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 comparison, a 4.44.5 percent GCC expansion would put 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 local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as 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, improving credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures focused on bring in foreign direct investment, reducing foreign ownership guidelines, expanding 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 dominate the development outlook, oil incomes are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development relieving 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 comparison, a 4.44.5 percent GCC growth would put 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 reasonably high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Data 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 rise as federal governments broaden 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.
How Is Business Excellence Essential for 2026 Expansion?Public-sector investment and reform remain main to sustaining this trend. Policy measures intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a helpful role in 2026.
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