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The sector likewise dealt with wider macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs likewise had a hard time for the a lot of part, particularly those connected to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items bring in new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, allowing investors to adjust positions without considerable primary productions or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC nations, the region stays durable 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 focused on worldwide 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and costs during the quarter, it has driven more volume and interest in regional assets.
In spite of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving favorable development momentum in recent years. While conflicts in the broader area and global financial uncertainty stay a structural restraint, GCC countries have up until now limited their effect on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
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 forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive overall conditions.
Is Your Shared Service Center Really Adding Value?The IMF's World Economic Outlook (October 2025) projects worldwide development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent 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 across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy steps focused on bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play an encouraging 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 Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth relieving to 3.1 percent in 2026, with innovative 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall 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 across 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.
Why Outsourcing Is the Future of GCC Business AgilityPublic-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.
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