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The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy background in China and global risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items bring in brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to adjust positions without substantial primary developments or redemptions. While current geopolitical events have actually resulted in more monetary pressure on GCC nations, the area remains resistant and well capitalized to handle the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on worldwide luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and rates during the quarter, it has actually driven more volume and interest in regional properties.
Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping positive development momentum in the last few years. While disputes in the wider region and international economic unpredictability stay a structural constraint, GCC nations have actually up until now restricted their impact on domestic economic performance through strong fiscal positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
How AI Transformation Does Fuel Success?The IMF's World Economic Outlook (October 2025) projects international development easing 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 place 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 relatively high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually 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, 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 intended at drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up 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, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth alleviating 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 slightly 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 stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as federal governments expand 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 financial investment in technology and AI-related facilities.
Analysing 2026 GCC Research for Strategic InsightsPublic-sector investment and reform remain central to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, relieving 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 price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive role in 2026.
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