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The sector also faced broader macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs likewise struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as evaluation pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market participation. Regardless 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 stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have occurred in the secondary market, allowing investors to change positions without substantial main developments or redemptions. While recent geopolitical events have led to more monetary pressure on GCC nations, the region remains resistant and well capitalized to deal with the situation.
In January, Boreas released 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 revealed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected sentiment and prices throughout the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable development momentum in the last few years. While disputes in the broader region and international financial unpredictability remain a structural constraint, GCC countries have so far limited their effect on domestic economic performance through strong fiscal positions, policy continuity, and sustained investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
Driving Continuous Improvement Through Gulf Shared ServicesThe IMF's World Economic Outlook (October 2025) tasks 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 place the area 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 threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial investment in services, facilities, 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps targeted at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a supportive function in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put 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 relatively high-growth pocketprovided that local risk conditions stay 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 actually continued to rise as governments broaden 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Preparing Your GCC Outsourcing Method for 2026 InterruptionsPublic-sector investment and reform stay central to sustaining this trend. Policy procedures aimed at bring in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive role in 2026.
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