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The sector likewise faced more comprehensive macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, particularly those connected to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in new capital.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually occurred in the secondary market, allowing investors to adjust positions without significant main creations or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC nations, the area remains durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on worldwide luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in regional assets.
Regardless of ongoing geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive development momentum over the last few years. While conflicts in the larger region and international economic unpredictability remain a structural restraint, GCC countries have so far restricted their influence on domestic economic performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent growth 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 towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving to 3.1 percent in 2026, with advanced 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 place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, and innovation. 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as governments broaden investment in services, facilities, and innovation. 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.
Effective Strategies for Optimizing Dubai Industrial GrowthPublic-sector investment and reform remain central to sustaining this trend. Policy steps targeted at attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful role in 2026.
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