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The sector also faced wider macro headwinds, including a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth innovation, as valuation pressures and global rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items drawing in new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, making it possible for financiers to adjust positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on worldwide luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and prices during the quarter, it has actually driven more volume and interest in local possessions.
In spite of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining positive growth momentum recently. While conflicts in the broader area and worldwide economic unpredictability stay a structural restriction, GCC nations have actually up until now limited their influence on domestic financial efficiency through strong financial positions, policy continuity, and sustained investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
How Shared Solutions Support Massive GCC GrowthThe IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 comparison, a 4.44.5 percent GCC expansion would place 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 reasonably high-growth pocketprovided that local threat conditions stay contained 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 continued to increase as federal governments expand financial 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide 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 comparison, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional threat conditions remain consisted of 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 continued to increase as federal governments broaden 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 investment in technology and AI-related infrastructure.
How Shared Solutions Support Massive GCC GrowthPublic-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful role in 2026.
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