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The sector also faced wider macro headwinds, including a more mindful policy background in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as evaluation pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products drawing in brand-new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have occurred in the secondary market, making it possible for financiers to adjust positions without significant main creations or redemptions. While recent geopolitical events have actually led to more financial pressure on GCC nations, the area remains resilient and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure concentrated on global luxury and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to introduce in April pending a final approval from ADX.
Q1 2026 revealed 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 impacted belief and rates throughout the quarter, it has driven more volume and interest in regional 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, preserving positive development momentum recently. While conflicts in the wider region and international economic uncertainty remain a structural restraint, GCC countries have actually so far restricted their impact on domestic financial performance through strong fiscal 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 similarly sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more positive total conditions.
Remaining Ahead of Regulatory Changes in the Qatari MarketThe IMF's World Economic Outlook (October 2025) projects global growth relieving to 3.1 percent in 2026, with sophisticated 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 position 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 reasonably high-growth pocketprovided that local threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, 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 investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide 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 comparison, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.
Information 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 rise as federal governments expand financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout 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 infrastructure.
Remaining Ahead of Regulatory Changes in the Qatari MarketPublic-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, easing 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 cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a supportive function in 2026.
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