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The sector likewise faced wider macro headwinds, including a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise had a hard time for the many part, particularly those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products attracting brand-new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, allowing financiers to change positions without substantial primary creations or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on global high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and prices during the quarter, it has driven more volume and interest in local assets.
Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping favorable growth momentum in the last few years. While conflicts in the broader region and international economic uncertainty stay a structural constraint, GCC nations have actually so far restricted their effect on domestic economic performance through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.
Expert Advice On Managing Regional Market ComplexityThe IMF's World Economic Outlook (October 2025) projects worldwide development reducing 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 somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand 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 rising investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF 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 towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects global growth reducing 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 expansion would put 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 regional danger conditions stay included 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 increase as governments expand investment in services, infrastructure, and innovation. 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 increasing financial investment in innovation and AI-related facilities.
Advanced Strategy for Regional SuccessPublic-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful function in 2026.
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