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The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products attracting new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken location in the secondary market, enabling financiers to adjust positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global luxury 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 launch in April pending a last approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local properties.
In spite of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving positive growth momentum in the last few years. While disputes in the larger region and international economic uncertainty remain a structural restriction, GCC countries have up until now restricted their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
Upskilling the UAE Labor Force for a Post-AI EconomyThe IMF's World Economic Outlook (October 2025) projects international development easing to 3.1 percent in 2026, with innovative 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 place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay consisted of 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 rise as federal governments expand 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps targeted at bring in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated 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 development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs 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 comparison, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected 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.
Why Outsourcing Is the Future of GCC Business AgilityPublic-sector investment and reform remain main to sustaining this pattern. Policy measures intended at drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful function in 2026.
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