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The sector also faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also had a hard time for the many part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products drawing in new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken location in the secondary market, allowing investors to adjust positions without considerable main creations or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC countries, the region remains durable and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local assets.
Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, preserving positive development momentum recently. While conflicts in the wider region and international economic unpredictability stay a structural constraint, GCC countries have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more positive general conditions.
Advanced Planning for GCC ExcellenceThe IMF's World Economic Outlook (October 2025) projects global development relieving 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 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently 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 technology. 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 rising financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures focused on attracting foreign direct financial investment, reducing 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 dominate the development outlook, oil incomes are expected to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international development 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 comparison, a 4.44.5 percent GCC growth would place the area 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 reasonably high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden 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 financial investment in innovation and AI-related facilities.
Corporate Strategy for a Changing GCC MarketPublic-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
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