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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the many part, particularly those linked to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, allowing investors to adjust positions without substantial primary developments or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the region stays resistant and well capitalized to deal with the situation.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on global high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected sentiment and rates during the quarter, it has actually driven more volume and interest in regional assets.
In spite of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining positive growth momentum recently. While conflicts in the broader region and international financial unpredictability stay a structural constraint, GCC nations have actually up until now limited their influence on domestic financial efficiency through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development easing 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 expansion would place the area 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 risk conditions stay included 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 continued to increase 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 rising investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging function 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 similarly sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth relieving 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 put 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 local risk conditions remain contained and reform momentum holds.
Data 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 increase as governments expand investment in services, facilities, 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 rising investment in innovation and AI-related facilities.
Ways to Leverage GCC Research for 2026 SuccessPublic-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging function in 2026.
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