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The sector also faced more comprehensive macro headwinds, including a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the most part, particularly those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products drawing in brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, allowing investors to change positions without significant primary creations or redemptions. While recent geopolitical occasions have actually resulted in more financial pressure on GCC nations, the area remains resistant and well capitalized to deal with the scenario.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and prices throughout the quarter, it has driven more volume and interest in regional possessions.
Regardless of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving favorable growth momentum in current years. While disputes in the larger region and international economic unpredictability stay a structural restraint, GCC nations have actually so far restricted their effect on domestic economic performance through strong financial positions, policy continuity, and continual investment.
3.2 percent growth in 2025, speeding up 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 towards more positive general conditions.
The Future of Performance Management in the UAEThe IMF's World Economic Outlook (October 2025) projects global growth easing 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 comparison, a 4.44.5 percent GCC expansion would put the area 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 local threat conditions remain contained 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 governments broaden financial investment in services, infrastructure, 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 investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy measures targeted at drawing in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase 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) tasks international development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Information 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 increase as federal governments expand 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 rising investment in technology and AI-related infrastructure.
From Cost Centers to Value Drivers: The SSC EvolutionPublic-sector financial investment and reform stay main to sustaining this trend. Policy steps focused on bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging function in 2026.
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