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The sector also faced broader macro headwinds, consisting of a more cautious policy backdrop in China and international risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of products drawing in brand-new capital.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, enabling financiers to adjust positions without significant main productions or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC nations, the area remains resilient and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on international 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 expected to release in April pending a final approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and rates throughout the quarter, it has driven more volume and interest in regional possessions.
In spite of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, maintaining favorable growth momentum in the last few years. While conflicts in the wider area and international economic uncertainty remain a structural restriction, GCC nations have up until now limited their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
Leveraging Regional Trends for Successful Saudi Market IntegrationThe IMF's World Economic Outlook (October 2025) projects international growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as governments broaden financial investment in services, infrastructure, 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 investment in technology and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy measures intended at attracting foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international development relieving 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 contrast, a 4.44.5 percent GCC growth 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 reasonably high-growth pocketprovided that local danger 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 total GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, and innovation. 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, improving credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy steps targeted at attracting foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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