Navigating Middle East Stock Market Shifts through 2026 thumbnail

Navigating Middle East Stock Market Shifts through 2026

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, outlines the attractive opportunities of purchasing GCC Infrastructure, driven by the area's growth and federal government efforts.

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

Analyzing Regional Investment Potential for 2026

For non-diversified nations, when cost of the product falls, there is a significant decline in government income, public spending, bank account balance and worldwide reserves: more volatility. The (including major commodity exporters, not limited to just oil) over the, across 25 indications (consisting of three digital signs). North America, Western Europe and East Asia Pacific countries top EDI scores for many years.

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


Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's local scores positively, it still lags five other regional groups., with the leading 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversification)., alongside 4 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 stick out (when comparing 2024 vs 2000). years, provided sped up diversification plans of many oil-exporting nations. posted a consistent improvement due to a mix of decreased dependence on fuel exports, decreased exports concentration and a change in the composition of exports.

Guide to Gulf Financial Market Trends in 2026

with oil exporters having the most affordable ratings (though individual country-specific performance has 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. Throughout all regions, the median score is the for both 2000 and 2024, and the highest in North America.

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

Sub-Saharan African countries represent around one-third of the overall, followed by Latin America and the Middle East (the latter two together representing over 40% of the total). 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 ).

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


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

reveals a significant increase in typical EDI scores from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the initial period versus 2020-24). with UAE exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & state-of-the-art manufacturing information).

Why Middle East Becoming Primary Industrial Powerhouse?

Its diversification metrics have stagnated, revealing the least improvement between the preliminary (2000-04) and last (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 project pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mostly reflecting non-hydrocarbon tax base growths and earnings collection performance improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it is in the very best interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations 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 ).

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

Upcoming GCC Market Trends 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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & state-of-the-art manufacturing data).

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base growths and revenue collection efficiency improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the finest interests of commodity dependent countries to diversify its export base, exports and trade partners.

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