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The sector likewise dealt with wider macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also had a hard time for the a lot of part, particularly those linked to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products attracting 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. Most activity appears to have taken place in the secondary market, allowing financiers to adjust positions without considerable main developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and costs throughout the quarter, it has actually driven more volume and interest in local possessions.
Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving positive development momentum recently. While disputes in the broader area and international economic uncertainty remain a structural restriction, GCC nations have actually up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive total conditions.
Ways to Utilize GCC Research for 2026 SuccessThe IMF's World Economic Outlook (October 2025) tasks worldwide growth easing 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 contrast, a 4.44.5 percent GCC growth 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 relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as federal governments expand investment in services, facilities, 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful function in 2026.
3.2 percent growth in 2025, accelerating 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, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects global growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the region 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 risk 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 total GDP, a share that has actually continued to rise as governments broaden financial investment in services, infrastructure, 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.
Ways to Utilize GCC Research for 2026 SuccessPublic-sector investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.
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