All Categories
Featured
Table of Contents
The sector likewise dealt with wider macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth technology, as appraisal pressures and international rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items bring in new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, making it possible for investors to change positions without substantial main creations or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the region stays resilient and well capitalized to handle the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on international luxury and customer 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 expected to release in April pending a final approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and prices during the quarter, it has actually driven more volume and interest in regional assets.
Despite continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving favorable growth momentum in current years. While conflicts in the broader region and international financial uncertainty stay a structural restriction, GCC countries have up until now restricted their influence on domestic financial performance through strong financial positions, policy continuity, and sustained financial 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, reflecting a shift toward more positive total conditions.
Handling Cross-Border Compliance Between Muscat and DohaThe IMF's World Economic Outlook (October 2025) tasks global growth relieving 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 comparison, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show 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 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's 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, speeding up 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 usually in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide 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 comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.
Data 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 rise as governments broaden investment in services, facilities, and innovation. 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Handling Cross-Border Compliance Between Muscat and DohaPublic-sector financial investment and reform remain main to sustaining this trend. Policy steps focused on bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging function in 2026.
Latest Posts
Future-Focused Operational Models for 2026 Ecosystems
Analysing 2026 Market Research for Future Growth
Corporate Strategy in the Changing GCC Landscape
