All Categories
Featured
Table of Contents
The sector likewise faced wider macro headwinds, including a more mindful policy backdrop in China and global risk-off belief 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 innovation, as appraisal pressures and global rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items attracting brand-new capital.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing investors to change positions without significant primary productions or redemptions. While current geopolitical events have led to more monetary pressure on GCC nations, the area remains resilient and well capitalized to deal with the situation.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on international 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 revealed some progress connecting to ETFs in the GCC. We anticipate 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 regional possessions.
Despite ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable development momentum in current years. While disputes in the wider area and global economic uncertainty remain a structural restriction, GCC countries have actually up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable general conditions.
Handling Cross-Border Compliance In Between Muscat and DohaThe IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 comparison, a 4.44.5 percent GCC expansion would place the region 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 reasonably high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show 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 across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly 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 toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global 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 contrast, 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, 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 account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, facilities, 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Handling Cross-Border Compliance In Between Muscat and DohaPublic-sector investment and reform remain central to sustaining this trend. Policy procedures focused on drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a helpful function in 2026.
Latest Posts
Connecting Policy and Business Excellence in the Middle East
Mastering Regional Business Frameworks for Sustainable Operations
GCC Business Outlook and Strategic Realities
