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The sector also faced wider macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs 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 focused, showing selective allocation rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, allowing investors to adjust positions without considerable primary developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on international 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 anticipated to launch in April pending a last approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in local possessions.
Despite ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, maintaining positive growth momentum in the last few years. While conflicts in the broader region and global financial uncertainty stay a structural restriction, GCC countries have actually up until now limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.
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 growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The Conclusive Guide to Saudi Arabia's Unique Economic ZonesThe IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving 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 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 fairly high-growth pocketprovided that local threat conditions stay included 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 expand investment in services, facilities, and innovation. 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
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 increase 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) jobs international development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put 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 relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, and technology. 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
The Rise of the Fractional Labor Force in the UAEPublic-sector financial investment and reform remain central to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a supportive function in 2026.
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