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The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the most part, especially those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and highly focused, showing selective allotment instead of broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products bring in new capital. This suggests that investors were targeting specific exposures, while decreasing or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually taken location in the secondary market, allowing financiers to adjust positions without considerable main creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and prices throughout the quarter, it has driven more volume and interest in local assets.
In spite of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving favorable growth momentum in current years. While disputes in the broader area and international economic uncertainty remain a structural constraint, GCC nations have up until now restricted their influence on domestic financial efficiency through strong financial positions, policy connection, and sustained investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The 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 just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion 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 relatively high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures intended at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful function in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects global development 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 place the region 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 relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments expand investment in services, infrastructure, and innovation. 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy measures focused on bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive role in 2026.
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