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The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy backdrop in China and international risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs also had a hard time for the most part, especially those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items bring in new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, making it possible for financiers to adjust positions without significant primary developments or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the region stays resistant and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on international luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and prices throughout the quarter, it has actually driven more volume and interest in regional properties.
In spite of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving favorable growth momentum recently. While disputes in the broader region and worldwide economic uncertainty stay a structural restriction, GCC nations have actually up until now restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and continual investment.
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 growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
Learning Regulatory Compliance in the Altering Qatari MarketThe IMF's World Economic Outlook (October 2025) tasks global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand 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 facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings 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 growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development reducing 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 put the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already 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 technology. 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a helpful role in 2026.
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