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The sector likewise faced more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the a lot of part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and international rate dynamics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of items bring in brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, allowing investors to change positions without substantial primary creations or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area stays resilient and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on international luxury 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 launch in April pending a last approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and costs during the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping positive growth momentum recently. While conflicts in the wider area and international economic unpredictability remain a structural constraint, GCC countries have actually so far restricted their impact on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
Oman's New Regulatory Landscape: What to Expect NextThe IMF's World Economic Outlook (October 2025) jobs international development reducing 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 contrast, 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 regional risk 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 increase as governments broaden financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across 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 facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a supportive role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing 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 innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively 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 actually continued to increase 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.
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