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The sector likewise faced broader macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items drawing in new capital.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, enabling investors to change positions without considerable main creations or redemptions. While current geopolitical events have led to more financial pressure on GCC nations, the region remains resistant and well capitalized to deal with the situation.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic exposure concentrated on worldwide luxury 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 expected to release in April pending a final approval from 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 conflict has actually impacted belief and prices throughout the quarter, it has driven more volume and interest in local assets.
Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping positive development momentum over the last few years. While conflicts in the wider region and global financial unpredictability stay a structural constraint, GCC countries have actually so far limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
Long-Term Dubai Economic Growth Patterns for 2026The IMF's World Economic Outlook (October 2025) projects global growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, 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, strengthening the GCC's status as a relatively 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 total GDP, a share that has actually continued to rise as federal governments expand 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 increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures intended at bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected 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 development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing 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 growth would put the region materially ahead of the world average and somewhat 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 stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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