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The sector also faced more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products drawing in brand-new capital. This indicates that investors were targeting specific exposures, while minimizing or turning out of others.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have happened in the secondary market, making it possible for financiers to adjust positions without considerable main developments or redemptions. While current geopolitical events have resulted in more monetary pressure on GCC nations, the area remains durable and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on international high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and rates during the quarter, it has driven more volume and interest in local possessions.
Regardless of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive growth momentum in recent years. While disputes in the larger area and worldwide financial uncertainty remain a structural restriction, GCC countries have actually so far limited their impact on domestic economic performance through strong financial positions, policy continuity, and continual financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects global growth reducing 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 position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy measures aimed at attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks global development easing to 3.1 percent in 2026, with advanced 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.
Key Steps for Operational Excellence in DubaiPublic-sector financial investment and reform remain central to sustaining this trend. Policy procedures focused on drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging function in 2026.
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