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The sector likewise dealt with broader macro headwinds, consisting of a more careful policy background in China and global risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the many part, especially those linked to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items attracting brand-new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling investors to change positions without considerable primary developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on international luxury 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 release in April pending a last approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and rates throughout the quarter, it has actually driven more volume and interest in local assets.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving positive development momentum in the last few years. While disputes in the wider region and global economic uncertainty stay a structural constraint, GCC countries have up until now restricted their impact on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise 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) jobs global 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 comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy steps targeted at bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth reducing 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 contrast, a 4.44.5 percent GCC expansion would place the area 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 regional risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial investment in services, facilities, 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 financial investment in innovation and AI-related infrastructure.
Advanced Strategy for Regional SuccessPublic-sector financial investment and reform stay central to sustaining this trend. Policy steps focused on attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful role in 2026.
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