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The sector likewise dealt with more comprehensive macro headwinds, including a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise struggled for the most part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items drawing in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, allowing financiers to adjust positions without substantial main developments or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and costs throughout the quarter, it has driven more volume and interest in regional assets.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum in the last few years. While disputes in the wider area and global economic uncertainty stay a structural constraint, GCC nations have up until now limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
Accelerating Dubai Industrial Expansion through InnovationThe IMF's World Economic Outlook (October 2025) tasks global growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 fairly high-growth pocketprovided that regional risk conditions remain 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, 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, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps focused on bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a helpful role in 2026.
3.2 percent growth in 2025, speeding up 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 toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, 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 fairly high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected 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.
How to Utilize Market Intelligence for 2026 SuccessPublic-sector financial investment and reform remain central to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding 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 control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
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