Major Shifts in the Future GCC Market thumbnail

Major Shifts in the Future GCC Market

Published Aug 17, 26
5 min read


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1 GCC, "HE GCCSG: The FTA in between the GCC and the UK is a Significant Strategic Opportunity to Raise Economic Relations to New Horizons," October 20252 GCC, "Joint Statement on Economic Cooperation In Between the Association of the Southeast Asian Countries (ASEAN) and the Gulf Cooperation Council (GCC)," May 2025 3 IMEC, "India-Middle East-Europe Economic Passage (IMEC) Development Update," April 20254 WAM, "UAE's CEPA programme strengthens worldwide financial ties with 26 tactical contracts," March 20255 Muscat Daily, "Oman, India set to sign complimentary trade pact 'extremely quickly'," September 20256 India Embassy Qatar, "India-Qatar Bilateral Relations," June 20257 Reuters, "Qatar's QIA plans to a minimum of double yearly United States investments over next years," Might 2025; WAM, "US$ 110 billion in UAE investments in Africa position nation as world's fourth-largest financier," October 2025; Whitehouse, "Fact Sheet: President Donald J.

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Corporate Strategy for Regional Success

The GCC ETF market gone into Q1 2026 in a combination stage, with activity remaining elevated but growth slowing. Overall properties held broadly constant over the quarter, while trading levels indicated continued repositioning and as a reaction to geopolitical news instead of a meaningful brand-new capital release. International macro conditions set a difficult background.

The GCC ETF universe made up 39 ETFs with an overall AUM of $9.35 billion (as of Q1 2026). Performance throughout the market was broadly negative, with just 13 ETFs delivering favorable returns compared to 26 in decline. Performance in Q1 2026 was driven by a narrow group of distinctive winners, rather than broad market strength.

Comparing Future-Focused Strategies Against Traditional Frameworks

Egypt delivered strong efficiency in January and February. In spite of a market pullback in March due to the war, both Egypt's market and its ETFs still published favorable returns for the quarter. The ongoing Middle East dispute and resulting energy shock have reshaped the outlook for emerging market equities in between the oil-haves and the oil-have-nots.

The sector likewise faced more comprehensive macro headwinds, including a more careful policy background in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs likewise struggled for the a lot of part, especially those linked to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on efficiency.

Flows in Q1 2026 were modest and extremely concentrated, showing selective allowance rather than broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products drawing in brand-new capital.

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Corporate Strategy for Regional Leadership

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, allowing investors to change positions without considerable primary developments or redemptions.

In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on international 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 revealed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and costs during the quarter, it has actually driven more volume and interest in local properties.

Despite ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive development momentum recently. While conflicts in the larger region and worldwide economic uncertainty stay a structural restraint, GCC nations have actually so far limited their impact on domestic economic performance through strong fiscal positions, policy connection, and continual investment.

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