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The sector likewise dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products bring in new capital.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, making it possible for financiers to adjust positions without considerable main developments or redemptions. While current geopolitical occasions have resulted in more financial pressure on GCC nations, the region remains resistant and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global high-end and customer brands. 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 introduce in April pending a final approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices throughout the quarter, it has driven more volume and interest in local properties.
Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, maintaining positive growth momentum recently. While conflicts in the wider region and worldwide financial uncertainty stay a structural restraint, GCC countries have actually so far restricted their effect on domestic economic performance through strong financial positions, policy continuity, and continual investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted 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 growth relieving to 3.1 percent in 2026, with sophisticated 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 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 relatively high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Information 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 increase as federal governments expand financial 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 investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this trend. Policy measures aimed at attracting foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play a helpful 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 development 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.
The IMF's World Economic Outlook (October 2025) tasks global growth alleviating to 3.1 percent in 2026, with innovative 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 area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures intended at drawing in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful role in 2026.
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