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The sector also faced broader macro headwinds, including a more careful policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs also had a hard time for the many part, particularly those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market participation. Regardless of weak efficiency, 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 larger and more liquid ETFs. Most activity appears to have taken place in the secondary market, allowing financiers to adjust positions without significant main creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.
In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping positive growth momentum in the last few years. While disputes in the wider area and international economic unpredictability stay a structural constraint, GCC countries have up until now limited their influence on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The Impact of AI on Regional Shared Service EffectivenessThe IMF's World Economic Outlook (October 2025) jobs global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 fairly high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, projects 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 typically in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs global development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion 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 relatively high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal 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, facilities, and technology. 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, improving credit conditions, and rising investment in innovation and AI-related facilities.
The Impact of AI on Regional Shared Service EffectivenessPublic-sector investment and reform stay main to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful role in 2026.
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