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The sector likewise dealt with wider macro headwinds, including a more mindful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and global rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items attracting brand-new capital.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, enabling financiers to adjust positions without considerable primary creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on worldwide luxury and consumer 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 last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and costs during the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive growth momentum recently. While conflicts in the wider area and global financial uncertainty stay a structural restriction, GCC nations have so far restricted their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
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 development forecasted to rise 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) tasks global development reducing 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 position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial 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 increasing financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging role in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area 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 local danger 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 overall GDP, a share that has continued to rise as federal 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, improving credit conditions, and increasing investment in technology and AI-related infrastructure.
Key Developments in the 2026 GCC EconomyPublic-sector financial investment and reform remain main to sustaining this trend. Policy steps aimed at attracting foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
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