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The sector also faced broader macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of items attracting new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, enabling financiers to adjust positions without significant primary developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on international high-end 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.
Regardless of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, preserving positive development momentum over the last few years. While conflicts in the larger area and international economic uncertainty remain a structural constraint, GCC countries have actually so far restricted their influence on domestic economic performance through strong financial positions, policy connection, and sustained 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 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.
Local Versus Global Approaches in the MENA RegionThe IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 expansion would put the area 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 fairly high-growth pocketprovided that local threat conditions remain included 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 governments broaden investment in services, infrastructure, and innovation. 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 technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating to 3.1 percent in 2026, with sophisticated 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 put 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 local threat conditions stay included 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 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 rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive function in 2026.
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