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The sector likewise faced broader macro headwinds, including a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the many part, particularly those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items drawing in new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually taken location in the secondary market, allowing investors to adjust positions without substantial primary developments or redemptions. While current geopolitical occasions have actually led to more monetary pressure on GCC nations, the region stays resistant and well capitalized to deal with the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on global 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 anticipated to launch in April pending a last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices during the quarter, it has actually driven more volume and interest in regional properties.
Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining positive growth momentum in the last few years. While conflicts in the wider area and international financial unpredictability stay a structural restraint, GCC countries have up until now limited their impact on domestic financial efficiency through strong financial positions, policy connection, and continual investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
How to Secure a Competitive Advantage in 2026The IMF's World Economic Outlook (October 2025) jobs global growth easing to 3.1 percent in 2026, with advanced 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 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 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 governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected 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) projects international growth easing to 3.1 percent in 2026, with sophisticated 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 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 fairly high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments expand financial investment in services, infrastructure, 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging function in 2026.
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