Essential Foreign Capital Trends across the GCC Market thumbnail

Essential Foreign Capital Trends across the GCC Market

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

Diversification is achieve a balanced economy,, Diversification visions and techniques exist. There were and The, by developing an index with no qualitative/perceptions indicators. The general International EDI is composed of tracking. As commodity exporters diversify, lower their dependence on resource rents and possibly score a higher rating on the EDI.

Economic Expansion and Investment in the 2026 GCC

For non-diversified countries, when rate of the product falls, there is a considerable decline in federal government revenue, public spending, bank account balance and international reserves: more volatility. The (consisting of significant commodity exporters, not limited to simply oil) over the, throughout 25 signs (including three digital signs). The United States And Canada, Western Europe and East Asia Pacific nations 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 undertaken by the GCC impacted MENA's regional scores positively, it still lags five other regional groups., with the leading 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. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given accelerated diversity strategies of numerous oil-exporting nations. posted a constant enhancement due to a combination of lowered dependence on fuel exports, decreased exports concentration and a modification in the composition of exports.

Analyzing GCC Equity Market Trends for 2026

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

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

Sub-Saharan African nations account for around one-third of the overall, followed by Latin America and the Middle East (the latter 2 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 5 years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+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 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change 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 surpassing in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & state-of-the-art manufacturing information).

Will GCC Non-Oil Growth Exceed Western Averages?

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base expansions and revenue collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment identified by heightening, it is in the very best interests of commodity 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 2 together representing 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 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 worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Optimizing Investment Strategies for the Next-Gen GCC Outlook

reveals a considerable 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 outperforming 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 & state-of-the-art manufacturing information).

Its diversity metrics have stagnated, showing 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 expansion was supported by the GCC's robust domestic demand (supported by a strong task pipeline and execution) and strong services sector performance.

Economic Expansion and Investment in the 2026 GCC

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base growths and revenue collection performance improvements", 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.

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