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The sector likewise dealt with more comprehensive 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 a lot of part, particularly those connected to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items 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 location in the secondary market, enabling financiers to adjust positions without considerable main developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and costs during the quarter, it has actually driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, preserving positive growth momentum over the last few years. While disputes in the wider region and international economic uncertainty remain a structural constraint, GCC nations have up until now restricted their effect on domestic economic efficiency through strong fiscal 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 development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development easing 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 place the area 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 fairly high-growth pocketprovided that local threat conditions remain 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 increase as governments broaden 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, improving credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play an encouraging function in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise 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 toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects global growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, 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, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden 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 investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive function in 2026.
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