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The sector likewise dealt with wider macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of products attracting brand-new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, allowing financiers to adjust positions without significant main productions or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on worldwide high-end and customer brands. 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 launch in April pending a final approval from ADX.
Q1 2026 showed some progress 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 belief and rates during the quarter, it has actually driven more volume and interest in regional assets.
Despite ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping positive development momentum recently. While disputes in the larger region and global economic uncertainty stay a structural restraint, GCC nations have actually up until now limited their effect on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating 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, showing a shift toward more favorable general conditions.
How to Be Successful in Saudi Arabia's Competitive Center LandscapeThe IMF's World Economic Outlook (October 2025) projects global growth reducing 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 contrast, a 4.44.5 percent GCC growth 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 threat 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 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 predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects global growth 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 comparison, a 4.44.5 percent GCC expansion would put 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 danger conditions remain included and reform momentum holds.
Data 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 governments expand financial investment in services, infrastructure, and innovation. 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 innovation and AI-related facilities.
How to Be Successful in Saudi Arabia's Competitive Center LandscapePublic-sector investment and reform remain main to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, reducing 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 price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful function in 2026.
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