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The sector likewise faced wider macro headwinds, consisting of a more mindful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs likewise had a hard time for the many part, especially those connected to carbon and high-growth technology, as evaluation pressures and global rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, making it possible for financiers to adjust positions without significant main productions or redemptions. While recent geopolitical events have actually resulted in more monetary pressure on GCC nations, the region stays durable and well capitalized to deal with the situation.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and prices throughout the quarter, it has actually driven more volume and interest in regional assets.
In spite of continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum in the last few years. While disputes in the broader area and international financial uncertainty remain a structural constraint, GCC nations have actually up until now limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development reducing 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 growth would place 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 fairly high-growth pocketprovided that local threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures aimed at attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging function 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 Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden 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 financial investment in innovation and AI-related facilities.
Accelerating Dubai Manufacturing Growth InitiativesPublic-sector financial investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.
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