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The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy background in China and international risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs likewise had a hard time for the most part, especially those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in new capital.
Trading activity stayed constant, 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, allowing financiers to adjust positions without significant primary developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure concentrated on global luxury and customer 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 anticipated to introduce in April pending a final approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local properties.
Regardless of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping favorable development momentum in recent years. While conflicts in the larger region and global economic uncertainty remain a structural constraint, GCC countries have up until now restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The 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 establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put 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 fairly high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more positive overall conditions.
The 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 comparison, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and a little 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.
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 broaden financial investment in services, facilities, and innovation. 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Driving Industrial Growth Within Dubai and the GCCPublic-sector investment and reform stay central to sustaining this trend. Policy measures targeted at bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
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