Is GCC Becoming Global Investment Powerhouse? thumbnail

Is GCC Becoming Global Investment Powerhouse?

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5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the attractive chances of purchasing GCC Facilities, driven by the area's growth and federal government initiatives.

Diversification is attain a balanced economy,, Diversity visions and techniques exist. The general Global EDI is made up of tracking.

For non-diversified countries, when cost of the commodity falls, there is a significant decline in government revenue, public spending, bank account balance and international reserves: more volatility. The (including significant product exporters, not limited to simply oil) over the, throughout 25 signs (including three digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI scores over the years.

ANSR July GCC PRs 50DR+ANSR July GCC PRs 50DR+


Despite the fact that structural reforms and diversification efforts undertaken by the GCC impacted MENA's regional scores positively, it still lags 5 other local groups., with the top 10 countries having less than a 10-point distinction in ratings (suggesting the strength of diversity)., together with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Among the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity plans of many oil-exporting countries. posted a steady enhancement due to a mix of lowered reliance on fuel exports, reduced exports concentration and a modification in the structure of exports.

Strategies for Asset Diversification in 2026 World Markets

with oil exporters having the least expensive scores (though specific country-specific efficiency has actually varied with time). 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 regions, the mean rating is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was among the leading ranked, while Mongolia's rating worsened compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among the leading nations. 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 most likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the total). Including, there has 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+ANSR July GCC PRs 50DR+


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

shows a significant boost in typical EDI scores 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 surpassing in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & state-of-the-art production data).

Building Sustainable Financial Structures with GCC Assets

Its diversity metrics have actually stagnated, showing the least enhancement between the initial (2000-04) and final (2020-24) recommendation 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 task pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base expansions and income collection effectiveness improvements", according to the IMF. In the current geopolitical environment identified by heightening, it is in the best interests of product 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 been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the 5 years pre- and post-pandemic ).

and ranked higher 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 throughout the period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Upcoming Middle East Investment Shifts for 2026 Global Markets

reveals a significant boost in typical EDI scores 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 surpassing in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially offered the rise in medium & state-of-the-art production information).

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

Will Foreign Investment Flows Change in 2026?

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

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