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The sector also faced wider macro headwinds, consisting of a more mindful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs also had a hard time for the many part, especially those linked to carbon and high-growth innovation, as evaluation pressures and international rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items attracting new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have taken location in the secondary market, making it possible for financiers to change positions without substantial primary creations or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC nations, the area remains resistant and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on international high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and prices throughout the quarter, it has actually driven more volume and interest in regional assets.
In spite of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping favorable development momentum recently. While disputes in the larger region and global economic unpredictability stay a structural constraint, GCC countries have actually up until now limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the area 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 reasonably high-growth pocketprovided that local threat 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 governments expand investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected 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 financial investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a helpful function in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position the region 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 fairly high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Information 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 broaden investment in services, facilities, and technology. 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Browsing the Legal Subtleties of Qatar's Private Sector DevelopmentPublic-sector financial investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
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