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The sector also faced wider macro headwinds, consisting of a more mindful policy background in China and international risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs likewise had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and international rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually happened in the secondary market, making it possible for financiers to adjust positions without significant main productions or redemptions. While recent geopolitical occasions have resulted in more monetary pressure on GCC countries, the region remains resilient and well capitalized to deal with the circumstance.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic 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 introduce in April pending a last approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and costs during the quarter, it has actually driven more volume and interest in regional properties.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping positive growth momentum recently. While conflicts in the wider area and international economic unpredictability stay a structural restriction, GCC nations have so far restricted their effect on domestic financial efficiency through strong financial positions, policy connection, and continual investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 relatively high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand financial investment in services, facilities, 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 rising financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth reducing to 3.1 percent in 2026, with sophisticated 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 put the area 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand investment in services, facilities, 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 increasing investment in technology and AI-related facilities.
Can Dubai Lead Industrial Growth through 2026?Public-sector financial investment and reform remain main to sustaining this trend. Policy measures focused on bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a supportive role in 2026.
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