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The sector likewise dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of products attracting brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, making it possible for financiers to change positions without significant main productions or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and costs throughout the quarter, it has actually driven more volume and interest in local properties.
Regardless of continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping positive growth momentum over the last few years. While conflicts in the larger region and worldwide economic uncertainty stay a structural restriction, GCC nations have so far restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
3.2 percent growth in 2025, speeding up 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 general conditions.
Key Benefits of Strategic Growth for the GCCThe IMF's World Economic Outlook (October 2025) tasks global growth 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 put 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 danger conditions remain included and reform momentum holds.
Information 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 rise as federal governments broaden investment in services, infrastructure, and innovation. 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 increasing investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures intended at attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a supportive role in 2026.
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, showing a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay consisted of 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 financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout 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 infrastructure.
Key Benefits of Strategic Growth for the GCCPublic-sector investment and reform remain main to sustaining this trend. Policy measures focused on drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a supportive function in 2026.
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