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The sector also faced broader macro headwinds, consisting of a more careful policy backdrop in China and international risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken location in the secondary market, making it possible for financiers to change positions without considerable main creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on worldwide 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more international 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 local assets.
Despite ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive growth momentum in the last few years. While conflicts in the larger area and worldwide economic unpredictability remain a structural restraint, GCC countries have so far limited their impact on domestic economic performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent growth 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 typically in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development alleviating 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 expansion would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local threat 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 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, improving credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected 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 growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place 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 fairly high-growth pocketprovided that local danger conditions stay included and reform momentum holds.

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden investment in services, facilities, 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy steps intended at bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive role in 2026.
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