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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy background in China and international risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in new capital.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, enabling investors to change positions without significant primary creations or redemptions. While current geopolitical occasions have led to more financial pressure on GCC nations, the area stays resilient and well capitalized to handle the situation.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on global luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed 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 impacted belief and prices throughout the quarter, it has actually driven more volume and interest in regional possessions.
Regardless of ongoing geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping positive growth momentum over the last few years. While disputes in the larger region and international economic unpredictability remain a structural restriction, GCC nations have actually so far limited their impact on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 toward more positive total conditions.
Beyond Salary: What Keeps UAE Professionals Loyal Today?The IMF's World Economic Outlook (October 2025) projects worldwide growth easing 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 somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout 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 technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this trend. Policy measures targeted at attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil price 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, 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth 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 position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening 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 reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden financial investment in services, infrastructure, and technology. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
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