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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 belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items bring in 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. Most activity appears to have taken place in the secondary market, allowing investors to adjust positions without considerable primary productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and costs during the quarter, it has actually driven more volume and interest in local properties.
Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping positive growth momentum over the last few years. While conflicts in the wider region and international financial uncertainty remain a structural restraint, GCC nations have up until now restricted their impact on domestic economic efficiency through strong fiscal positions, policy connection, and continual investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.
Strategic Steps for Getting in Saudi Arabia's Diverse MarketsThe IMF's World Economic Outlook (October 2025) jobs global development reducing 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 contrast, a 4.44.5 percent GCC expansion would put the region 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 risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already 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, facilities, 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 technology and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures intended 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 reduce the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive 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, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 reasonably high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.
Data 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 rise as federal governments expand 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Assessing the Possible of Saudi Arabia's Emerging Urban HubsPublic-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging function in 2026.
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