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The sector likewise dealt with broader macro headwinds, including a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have taken location in the secondary market, enabling investors to change positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on global luxury and consumer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to release in April pending a final approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and rates throughout the quarter, it has actually driven more volume and interest in local possessions.
Despite ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping favorable development momentum in the last few years. While disputes in the wider area and international financial unpredictability remain a structural restriction, GCC countries have actually up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects global development relieving to 3.1 percent in 2026, with advanced 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 put the region 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 fairly high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a helpful function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth 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 international growth alleviating 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 comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial 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 investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful role in 2026.
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