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The sector likewise faced broader macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise had a hard time for the most part, particularly those connected to carbon and high-growth technology, as appraisal pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of products bring in brand-new capital.
Trading activity remained consistent, with average 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 location in the secondary market, enabling investors to adjust positions without significant primary creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on international high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local properties.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping favorable growth momentum over the last few years. While disputes in the broader area and global economic unpredictability stay a structural constraint, GCC countries have up until now limited their effect on domestic financial performance through strong financial 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 growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
Predicting the Next Middle East Corporate EnvironmentThe IMF's World Economic Outlook (October 2025) tasks international development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing 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 slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to rise as governments expand 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures intended at bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with innovative 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 area 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 regional risk conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.
Predicting the Next Middle East Corporate EnvironmentPublic-sector investment and reform remain central to sustaining this trend. Policy measures targeted 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 reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful function in 2026.
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