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The sector also dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of items attracting new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, making it possible for financiers to change positions without considerable main developments or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international luxury and customer 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 last approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and rates during the quarter, it has actually driven more volume and interest in regional assets.
Regardless of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable development momentum in current years. While disputes in the wider area and global economic uncertainty remain a structural restriction, GCC nations have actually up until now limited their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.
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 growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development relieving 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 growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay consisted of 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 continued to rise as governments expand investment in services, facilities, and technology. 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging role in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects global growth 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 place the region 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 reasonably high-growth pocketprovided that local threat conditions remain 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 overall GDP, a share that has actually continued to rise as federal governments expand financial 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Expert Advice On Managing Regional Market ComplexityPublic-sector financial investment and reform remain central to sustaining this trend. Policy steps intended at attracting foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play an encouraging function in 2026.
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