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The sector likewise dealt with wider macro headwinds, consisting of a more mindful policy background in China and international risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth innovation, as appraisal pressures and international rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items drawing in brand-new capital.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling investors to adjust positions without considerable primary creations or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the area stays resistant and well capitalized to handle the situation.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on global high-end 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and rates throughout the quarter, it has driven more volume and interest in regional properties.
Regardless of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving favorable development momentum over the last few years. While disputes in the larger region and global financial unpredictability stay a structural constraint, GCC countries have so far limited their effect on domestic financial performance through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development reducing 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 growth 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 threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits 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 development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development 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 expansion would put 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 reasonably high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Predicting the 2026 Middle East Business LandscapePublic-sector investment and reform stay central to sustaining this trend. Policy steps focused on 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 decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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