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The sector also dealt with more comprehensive macro headwinds, consisting of a more careful policy background in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as evaluation pressures and worldwide rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of products attracting brand-new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing financiers to adjust positions without considerable primary creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end 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 worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and costs during the quarter, it has actually driven more volume and interest in regional properties.
Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable development momentum recently. While disputes in the wider region and worldwide financial unpredictability stay a structural restraint, GCC nations have actually so far limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.
3.2 percent growth in 2025, accelerating 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, showing a shift toward more favorable overall conditions.
Essential Middle East Market Research Reports for 2026The 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 comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local threat 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 governments expand financial 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 facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps aimed 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 lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive function 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 Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects international growth 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 contrast, a 4.44.5 percent GCC expansion would put 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 regional risk conditions remain 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 expand investment in services, facilities, 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 increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps intended at bring in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive role in 2026.
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