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The sector also dealt with wider macro headwinds, consisting of a more careful policy background in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the most part, particularly those linked to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling investors to adjust positions without considerable primary productions or redemptions. While recent geopolitical events have actually led to more financial pressure on GCC countries, the area stays resilient and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure concentrated on international luxury and consumer brand names. 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 showed some development 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 affected sentiment and costs during the quarter, it has actually driven more volume and interest in local properties.
Despite continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, maintaining positive growth momentum in current years. While conflicts in the larger region and international financial uncertainty remain a structural restriction, GCC nations have actually up until now restricted their influence on domestic economic efficiency through strong financial positions, policy continuity, and sustained financial 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, reflecting a shift towards more positive general conditions.
The Shift From Traditional Shared Solutions to Intelligent HubsThe IMF's World Economic Outlook (October 2025) jobs worldwide development easing 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 expansion would position the area 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 reasonably high-growth pocketprovided that local danger conditions stay included and reform momentum holds.
Data 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 increase as governments broaden investment in services, infrastructure, 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps focused on bring in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted 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) tasks international development relieving to 3.1 percent in 2026, with advanced 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 region 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 fairly high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden investment in services, facilities, 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.
The Shift From Traditional Shared Solutions to Intelligent HubsPublic-sector financial investment and reform stay main to sustaining this trend. Policy procedures aimed at attracting foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a supportive function in 2026.
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