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The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Had a hard time for the a lot of part, especially those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products drawing in brand-new capital.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing investors to adjust positions without considerable primary productions or redemptions. While current geopolitical events have resulted in more financial pressure on GCC nations, the area stays durable and well capitalized to handle the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and prices during the quarter, it has driven more volume and interest in regional properties.
Despite continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping favorable growth momentum recently. While conflicts in the larger area and global financial unpredictability remain a structural restriction, GCC nations have actually so far restricted their influence on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
From Cost Centers to Worth Drivers: The SSC EvolutionThe IMF's World Economic Outlook (October 2025) tasks international development alleviating 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 contrast, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial 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, improving credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
3.2 percent development in 2025, speeding up 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 overall conditions.
The IMF's World Economic Outlook (October 2025) projects international growth 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 contrast, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.
Information 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 governments broaden financial 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 infrastructure.
From Cost Centers to Worth Drivers: The SSC EvolutionPublic-sector investment and reform remain main to sustaining this trend. Policy steps intended at attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a supportive function in 2026.
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