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The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy background in China and international risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, allowing financiers to change positions without significant primary productions or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on international high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and prices throughout the quarter, it has driven more volume and interest in local properties.
In spite of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping favorable development momentum in current years. While disputes in the wider area and global economic unpredictability remain a structural restraint, GCC countries have actually up until now restricted their influence on domestic financial efficiency through strong fiscal positions, policy connection, 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 likewise sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable total conditions.
Strategic Advice Regarding Navigating GCC Economy ComplexityThe IMF's World Economic Outlook (October 2025) jobs international growth easing 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 contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial investment in services, infrastructure, 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, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this pattern. Policy procedures intended at bring in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive function in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international development alleviating 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 contrast, a 4.44.5 percent GCC growth would put the region 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 threat conditions remain contained and reform momentum holds.
Information 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 broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout 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 technology and AI-related facilities.
Strategic Advice Regarding Navigating GCC Economy ComplexityPublic-sector financial investment and reform remain main to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive role in 2026.
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