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The sector also dealt with broader macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the most part, particularly those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products attracting brand-new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, making it possible for investors to adjust positions without significant main developments or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the area stays resistant and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global High-end 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 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and costs during the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving favorable growth momentum recently. While disputes in the broader area and international economic uncertainty remain a structural constraint, GCC nations have up until now restricted their effect on domestic financial efficiency through strong fiscal 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
Why Does Operational Excellence Essential for Future Growth?The IMF's World Economic Outlook (October 2025) jobs global development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position 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 regional risk conditions stay included and reform momentum holds.
Information 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 increase as federal governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this pattern. Policy procedures aimed at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
The World Bank, on the other hand, projects 3.2 percent development 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 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 place the area 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 regional risk conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as federal governments expand investment in services, facilities, and innovation. 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 financial investment in technology and AI-related infrastructure.
GCC News: Strategic Market Trends in 2026Public-sector financial investment and reform remain central to sustaining this trend. Policy steps targeted at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging role in 2026.
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