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The sector also faced broader macro headwinds, consisting of a more careful policy background in China and international risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.
Circulations 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 just a small number of items bring in new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, allowing financiers to adjust positions without considerable primary creations or redemptions. While current geopolitical events have resulted in more financial pressure on GCC nations, the region remains resistant and well capitalized to deal with the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on worldwide high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and costs during the quarter, it has actually driven more volume and interest in local assets.
In spite of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping favorable growth momentum in recent years. While disputes in the larger region and international financial uncertainty stay a structural restriction, GCC countries have up until now limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly 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 towards more positive total conditions.
Key Benefits of Industrial Growth for DubaiThe IMF's World Economic Outlook (October 2025) tasks international development easing 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 contrast, a 4.44.5 percent GCC expansion would put 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 contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden 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, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful function in 2026.
3.2 percent growth in 2025, accelerating 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, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly 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 represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden 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 technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps intended at drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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