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The sector likewise dealt with wider macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs also had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as evaluation pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items attracting 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. Most activity appears to have occurred in the secondary market, making it possible for investors to change positions without substantial primary developments or redemptions. While recent geopolitical events have actually led to more financial pressure on GCC nations, the area remains durable and well capitalized to deal with the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on global luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and rates during the quarter, it has driven more volume and interest in local properties.
In spite of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining positive development momentum in the last few years. While conflicts in the broader region and global financial uncertainty stay a structural restriction, GCC nations have actually up until now restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects international development reducing to 3.1 percent in 2026, with innovative 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 put the region 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.
Data from the GCC Statistical Center reveal that non-oil sectors already account for 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures focused on drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 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 towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects international growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just 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 included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Why Gulf Shared Service Centers Are Moving to the CloudPublic-sector financial investment and reform stay main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play an encouraging role in 2026.
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