How Economic Diversification Boosts GCC Growth in 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the appealing opportunities of buying GCC Infrastructure, driven by the region's development and government efforts.

Diversity is accomplish a well balanced economy,, Diversity visions and techniques exist. The general Worldwide EDI is made up of tracking.

For non-diversified nations, when price of the product falls, there is a substantial decrease in government income, public costs, bank account balance and international reserves: more volatility. The (including significant product exporters, not limited to just oil) over the, throughout 25 indications (including 3 digital indicators). North America, Western Europe and East Asia Pacific nations top EDI ratings for many years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts carried out by the GCC impacted MENA's local scores positively, it still lags five other local groups., with the leading 10 countries having less than a 10-point difference in scores (suggesting the strength of diversification)., along with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided sped up diversification strategies of lots of oil-exporting countries. published a steady enhancement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a change in the structure of exports.

How Industrial Expansion Drives Middle East Stability in 2026

with oil exporters having the most affordable scores (though individual country-specific efficiency has differed gradually). Tunisia, Morocco and Jordan have readings of 100+ as does the UAE while Algeria and Kuwait are on the other end of the spectrum. Across all areas, the median rating is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's score got worse compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among the top countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (with variation likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries account for around one-third of the overall, followed by Latin America and the Middle East (the latter two together accounting for over 40% of the total). Consisting of, there has actually been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the five years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+

and ranked greater than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

reveals a significant boost in typical EDI ratings from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the preliminary period versus 2020-24). with UAE outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & modern manufacturing information).

Key Factors Shaping Gulf Market Forecasts by 2026

Its diversification metrics have stagnated, revealing the least enhancement between the initial (2000-04) and final (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic need (supported by a strong task pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base expansions and income collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment defined by heightening, it is in the finest interests of commodity dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations account for around one-third of the total, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the overall). Consisting of, there has actually been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the five years pre- and post-pandemic ).

and ranked greater than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Why Economic Expansion Drives GCC Growth for 2026

reveals a considerable boost in average EDI ratings from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the initial duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & modern production information).

Its diversification metrics have actually stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) reference periods., regardless of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic need (supported by a strong project pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base growths and profits collection efficiency enhancements", according to the IMF. In the present geopolitical environment defined by magnifying, it is in the finest interests of product dependent countries to diversify its export base, exports and trade partners.