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The sector likewise faced more comprehensive macro headwinds, consisting of a more mindful policy background in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise had a hard time for the a lot of part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to change positions without significant primary creations or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global luxury and consumer brands. 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 revealed some progress associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices during the quarter, it has driven more volume and interest in regional assets.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive development momentum in current years. While disputes in the wider area and worldwide economic uncertainty remain a structural restriction, GCC nations have so far restricted their impact on domestic financial performance through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating 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 towards more positive total conditions.
Centralizing Operations: The Next Phase for Gulf Shared ServicesThe IMF's World Economic Outlook (October 2025) jobs international growth alleviating 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 put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden investment in services, facilities, 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 increasing investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy measures aimed at bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up 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, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs global development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place 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 danger conditions remain 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 total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in technology and AI-related facilities.
Centralizing Operations: The Next Phase for Gulf Shared SolutionsPublic-sector financial investment and reform stay main to sustaining this pattern. Policy steps aimed at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a supportive role in 2026.
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