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The sector also dealt with more comprehensive macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs likewise had a hard time for the many part, especially those connected to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, enabling investors to change positions without considerable primary creations or redemptions. While current geopolitical events have actually led to more monetary pressure on GCC countries, the area stays resilient and well capitalized to deal with the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on international high-end and consumer brands. 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 launch in April pending a last approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and costs throughout the quarter, it has actually driven more volume and interest in regional assets.
Despite ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive growth momentum recently. While conflicts in the larger region and global economic unpredictability remain a structural constraint, GCC countries have so far limited their impact on domestic economic efficiency through strong financial positions, policy continuity, and sustained investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development easing 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 contrast, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions remain contained 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 financial investment in services, facilities, and technology. 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, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth 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 function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. 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 favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global development 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 comparison, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening 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 already represent more than 73 percent of total 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 throughout 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.
Ways to Optimize GCC Corporate PlanningPublic-sector financial investment and reform stay main to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive role in 2026.
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