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The sector likewise faced broader macro headwinds, including a more mindful policy background in China and international risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs Had a hard time 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 highly concentrated, showing selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products attracting new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken location in the secondary market, allowing financiers to change positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and prices throughout the quarter, it has driven more volume and interest in local assets.
Regardless of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive development momentum in current years. While conflicts in the wider area and international financial uncertainty remain a structural constraint, GCC nations have actually so far restricted their impact on domestic economic efficiency through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent development 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 towards more favorable general conditions.
How Emerging Saudi Centers Are Attracting Global InvestmentThe IMF's World Economic Outlook (October 2025) projects international growth easing to 3.1 percent in 2026, with innovative 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 place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures focused on drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful role in 2026.
3.2 percent development 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, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development relieving to 3.1 percent in 2026, with sophisticated 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 fairly high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand 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, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy procedures aimed at bring in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging function in 2026.
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