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The sector also dealt with broader macro headwinds, including a more mindful policy background in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs likewise had a hard time for the most part, especially those linked to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items attracting new capital.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without substantial primary creations or redemptions. While recent geopolitical occasions have led to more monetary pressure on GCC nations, the area remains resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure concentrated on worldwide high-end 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 expected 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 actually impacted belief and rates during 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 continued to show strength, maintaining favorable development momentum in current years. While disputes in the larger area and worldwide financial unpredictability stay a structural restriction, GCC nations have so far restricted their effect 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 development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
Can Market Analytics Drive Middle East Industrial Success?The IMF's World Economic Outlook (October 2025) tasks worldwide development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 regional danger conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand financial investment in services, facilities, 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 investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures aimed at drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth 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 development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments expand financial 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
How to Maintain a Competitive Advantage in 2026Public-sector investment and reform remain central to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful role in 2026.
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