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The sector also dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products bring in brand-new capital.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have occurred in the secondary market, allowing financiers to change positions without significant main developments or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC countries, the region remains resilient and well capitalized to handle the situation.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic direct exposure concentrated on global luxury and customer brands. 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 release in April pending a final approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and costs throughout the quarter, it has driven more volume and interest in regional possessions.
Despite ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum in the last few years. While conflicts in the wider region and worldwide economic uncertainty stay a structural constraint, GCC nations have actually up until now restricted their impact on domestic financial performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to increase 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) jobs global development easing 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 contrast, 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, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial 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 innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play an encouraging role in 2026.
The World Bank, on the other hand, tasks 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth alleviating 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 expansion would place 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 stay included and reform momentum holds.
Data 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 rise as governments broaden investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Middle East News: Strategic Market Trends for 2026Public-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at attracting foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive function in 2026.
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