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The sector likewise dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs also struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products bring in new capital.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, making it possible for investors to adjust positions without substantial main developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic exposure concentrated on worldwide high-end 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 connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and rates throughout the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping favorable growth momentum in recent years. While disputes in the broader region and worldwide economic uncertainty remain a structural restraint, GCC nations have actually up until now limited their influence on domestic financial performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
The Course to Mature Shared Services in the GulfThe IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 expansion would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, and innovation. 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures focused on attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up 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, showing a shift toward more favorable total 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 establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Comprehending the Effect of New Commercial Codes in OmanPublic-sector financial investment and reform remain main to sustaining this trend. Policy measures aimed at bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a helpful role in 2026.
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