Building Sustainable Financial Structures with Arabian Assets thumbnail

Building Sustainable Financial Structures with Arabian Assets

Published en
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, describes the appealing chances of purchasing GCC Infrastructure, driven by the area's growth and government initiatives.

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. However there were and The, by creating an index with no qualitative/perceptions indicators. The total Worldwide EDI is composed of tracking. As commodity exporters diversify, lower their dependence on resource rents and potentially score a greater score on the EDI.

For non-diversified nations, when price of the product falls, there is a considerable decrease in federal government revenue, public costs, present account balance and worldwide reserves: more volatility. The (including major product exporters, not restricted to just oil) over the, throughout 25 indications (consisting of three digital indicators). North America, Western Europe and East Asia Pacific countries top EDI scores throughout the years.

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


Despite the fact that structural reforms and diversification efforts carried out by the GCC affected MENA's regional scores favorably, it still lags 5 other local groups., with the top 10 nations having less than a 10-point distinction in ratings (implying the strength of diversity)., along with four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income country (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 stick out (when comparing 2024 vs 2000). years, given accelerated diversity strategies of numerous oil-exporting countries. published a steady enhancement due to a mix of lowered dependence on fuel exports, reduced exports concentration and a change in the composition of exports.

Why GCC Emerging as Primary Investment Hub?

with oil exporters having the most affordable scores (though private 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. Throughout all areas, the average rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's rating aggravated compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement amongst the top 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 in between the resource-heavy states (e.g.

Sub-Saharan African countries account for around one-third of the total, followed by Latin America and the Middle East (the latter 2 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 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 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement 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 preliminary period versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & state-of-the-art production information).

Benefits of Expanding Industrial Projects across GCC

Its diversity metrics have stagnated, showing the least improvement 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 demand (supported by a strong job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and profits collection performance enhancements", according to the IMF. In the current geopolitical environment defined by heightening, it is in the finest interests of product reliant nations to diversify its export base, exports and trade partners.

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 ).

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 trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Comparing GCC Capital Climates vs Global Markets

shows a considerable increase in average 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 outperforming in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & high-tech manufacturing data).

Its diversity metrics have stagnated, showing the least improvement between the preliminary (2000-04) and final (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic demand (supported by a strong job pipeline and application) and strong services sector performance.

Top Global Investment Prospects in the Region

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base expansions and profits collection effectiveness enhancements", according to the IMF. In the current geopolitical environment characterized by heightening, it is in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

Latest Posts

Current GCC Equity Market Cycles to Watch

Published Aug 28, 26
4 min read