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The sector likewise faced broader macro headwinds, including a more cautious policy background in China and global risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items attracting new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have occurred in the secondary market, allowing financiers to adjust positions without substantial primary creations or redemptions. While current geopolitical events have actually resulted in more financial pressure on GCC countries, the region stays resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on worldwide luxury and consumer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to launch in April pending a final approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and costs throughout the quarter, it has driven more volume and interest in local assets.
Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving favorable growth momentum in the last few years. While conflicts in the broader area and worldwide economic unpredictability remain a structural restriction, GCC nations have actually so far restricted their influence on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
Understanding the Subtleties of Omani Labor and Tax LawsThe IMF's World Economic Outlook (October 2025) projects global development relieving 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 growth would place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions remain 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 financial investment in services, facilities, and innovation. 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 rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected 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 global development easing to 3.1 percent in 2026, with innovative 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 put 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 fairly 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 account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand investment in services, facilities, 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 rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy measures aimed at drawing in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive role in 2026.
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