Vital Factors Shaping GCC Economic Forecasts by 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, lays out the attractive opportunities of investing in GCC Infrastructure, driven by the area's development and government efforts.

Diversification is attain a balanced economy,, Diversification visions and methods exist. There were and The, by creating an index with no qualitative/perceptions indications. The overall Worldwide EDI is composed of tracking. As product exporters diversify, lower their dependence on resource leas and possibly score a greater rating on the EDI.

For non-diversified nations, when price of the commodity falls, there is a significant decrease in government earnings, public spending, current account balance and international reserves: more volatility. The (including major product exporters, not restricted to simply oil) over the, across 25 indications (consisting of 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores for many years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional ratings favorably, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point distinction in scores (implying the strength of diversity)., 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).

Amongst the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given sped up diversity plans of many oil-exporting countries. published a stable enhancement due to a combination of lowered dependence on fuel exports, lowered exports concentration and a modification in the structure of exports.

Navigating Middle East Equity Exchange Trends for 2026

with oil exporters having the most affordable ratings (though individual country-specific efficiency has actually varied over 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 average rating is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an enhancement amongst the leading 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 variation likely driven by the dichotomy within the area 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 overall). Including, 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+

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 rose 17 ranks throughout the duration. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals a significant increase in typical 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 outperforming in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech manufacturing information).

Is the GCC Becoming Primary Investment Powerhouse?

Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and final (2020-24) referral periods., in spite 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 revenue, "mostly reflecting non-hydrocarbon tax base expansions and income collection performance enhancements", according to the IMF. In the existing geopolitical environment identified by intensifying, it is in the best interests of commodity reliant 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 two together accounting for over 40% of the total). Including, 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 rose 17 ranks throughout the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

The Impact of Capital on GCC Industrial Development

reveals a substantial boost in average EDI scores 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 exceeding 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).

Its diversity metrics have actually stagnated, showing the least enhancement in between the initial (2000-04) and last (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 job pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.