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The sector also dealt with wider macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs also struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as appraisal pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of items attracting brand-new capital.
Trading activity remained stable, 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 actually occurred in the secondary market, making it possible for investors to adjust positions without considerable main creations or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area remains durable and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic 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 expected to introduce in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and costs throughout the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, maintaining favorable growth momentum over the last few years. While conflicts in the larger region and global economic uncertainty remain a structural restriction, GCC nations have so far restricted their impact on domestic financial performance through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
Navigating the Upcoming Regional Business Environment for LeadersThe IMF's World Economic Outlook (October 2025) projects international development reducing 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 area 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 fairly high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently 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 innovation. 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 main to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging function in 2026.
3.2 percent development in 2025, speeding up 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 favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 comparison, a 4.44.5 percent GCC expansion would put 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 reasonably high-growth pocketprovided that local risk conditions remain included and reform momentum holds.

Information 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 rise as governments broaden financial investment in services, facilities, and innovation. 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 increasing financial investment in innovation and AI-related infrastructure.
Ways to Leverage Market Research for 2026 SuccessPublic-sector financial investment and reform remain central to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive function in 2026.
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