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The sector also faced broader macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market involvement. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products drawing in new capital.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to change positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on international luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and costs during the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining positive development momentum recently. While conflicts in the wider region and international economic unpredictability remain a structural restraint, GCC countries have actually up until now restricted their effect on domestic financial efficiency through strong financial positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted 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) projects international growth reducing to 3.1 percent in 2026, with innovative 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 position the area 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 relatively high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal 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 expand investment in services, infrastructure, 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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 usually in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth easing 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 growth 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 relatively high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as federal governments expand financial investment in services, infrastructure, 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.
Why Does Business Excellence Vital for 2026 Growth?Public-sector financial investment and reform stay central to sustaining this trend. Policy steps intended at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a supportive role in 2026.
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