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The sector also faced wider macro headwinds, including a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth innovation, as appraisal pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually happened in the secondary market, enabling financiers to adjust positions without significant primary developments or redemptions. While current geopolitical events have actually led to more financial pressure on GCC nations, the region remains resistant and well capitalized to deal with the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed 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 affected belief and costs throughout the quarter, it has driven more volume and interest in regional assets.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable growth momentum over the last few years. While disputes in the wider region and global financial uncertainty remain a structural restriction, GCC countries have actually so far restricted their impact on domestic financial efficiency through strong financial positions, policy continuity, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise 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 toward more positive general conditions.
Actionable Tips for Navigating the 2026 GCC LandscapeThe IMF's World Economic Outlook (October 2025) projects global growth reducing 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 region 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 reasonably high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across 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 infrastructure.
Public-sector investment and reform stay main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging role in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 region 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 reasonably high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden 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.
How to Maintain a Competitive Edge in 2026Public-sector investment and reform stay central to sustaining this trend. Policy measures intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful function in 2026.
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