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The sector also dealt with broader macro headwinds, including a more careful policy backdrop in China and global risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of products bring in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken location in the secondary market, enabling investors to change positions without considerable primary creations or redemptions. While current geopolitical events have resulted in more monetary pressure on GCC countries, the area remains resilient and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on global luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and costs during the quarter, it has actually driven more volume and interest in regional properties.
Despite continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping favorable development momentum in the last few years. While disputes in the larger region and global economic uncertainty remain a structural restraint, GCC countries have actually up until now restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable general conditions.
How the UAE Is Reinventing Talent Retention for 2026The IMF's World Economic Outlook (October 2025) tasks international development alleviating 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 put the area 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 contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as governments expand 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, enhancing credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy procedures aimed at drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful function in 2026.
3.2 percent development in 2025, speeding up 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 towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, 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, enhancing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent 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 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 technology and AI-related infrastructure.
How the UAE Is Reinventing Talent Retention for 2026Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at attracting foreign direct investment, easing foreign ownership guidelines, expanding 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 development outlook, oil earnings are anticipated to play an encouraging role in 2026.
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