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The sector likewise dealt with wider macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without substantial primary developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on worldwide high-end 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 anticipated to launch in April pending a final approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and prices during the quarter, it has driven more volume and interest in regional possessions.
Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining positive development momentum in recent years. While conflicts in the larger area and global economic uncertainty stay a structural constraint, GCC countries have so far limited their impact on domestic economic performance through strong financial positions, policy connection, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive total conditions.
How Shared Solutions Are Driving Digital Improvement in the GulfThe IMF's World Economic Outlook (October 2025) jobs worldwide development easing to 3.1 percent in 2026, with innovative 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 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 reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.
Information 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 rise as governments expand financial investment in services, facilities, and technology. 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 increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures aimed at bring in foreign direct financial investment, easing foreign ownership rules, 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 growth outlook, oil profits are expected to play a supportive role in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put 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 reasonably high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, and innovation. 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 facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures aimed at bring in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive function in 2026.
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