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The sector also faced broader macro headwinds, including a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs also struggled for the many part, especially those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in brand-new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, making it possible for financiers to change positions without substantial primary developments or redemptions. While current geopolitical occasions have actually led to more financial pressure on GCC countries, the region stays durable and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on international luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and prices during the quarter, it has driven more volume and interest in local possessions.
In spite of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping positive development momentum recently. While conflicts in the larger area and global economic unpredictability remain a structural restraint, GCC nations have up until now restricted their effect on domestic financial performance through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
How to Utilize GCC Research for 2026 GrowthThe IMF's World Economic Outlook (October 2025) projects global growth easing 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 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, and technology. 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 increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a helpful role in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth 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 comparison, a 4.44.5 percent GCC growth would place 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 threat conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 central to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging role in 2026.
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