Key Drivers Influencing Gulf Economic Outlooks by 2026 thumbnail

Key Drivers Influencing Gulf Economic Outlooks by 2026

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

Diversification is achieve a well balanced economy,, Diversification visions and strategies exist. There were and The, by producing an index with no qualitative/perceptions indicators. The overall International EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource rents and potentially score a greater rating on the EDI.

For non-diversified countries, when cost of the product falls, there is a significant decrease in federal government profits, public costs, existing account balance and global reserves: more volatility. The (including major commodity exporters, not limited to just oil) over the, across 25 signs (consisting of 3 digital signs). 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+


Although 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 leading 10 countries having less than a 10-point distinction in scores (implying the strength of diversity)., alongside four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity plans of numerous oil-exporting countries. published a consistent improvement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a modification in the structure of exports.

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with oil exporters having the most affordable scores (though private country-specific performance has actually varied 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. Across all areas, the mean score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's rating worsened compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement 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 region (with difference most likely driven by the dichotomy within the area 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 representing over 40% of the total). 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+ANSR July GCC PRs 50DR+


and ranked greater 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 nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals a substantial boost in typical EDI ratings from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the preliminary duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & state-of-the-art manufacturing data).

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Its diversification metrics have actually 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 need (supported by a strong job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness improvements", according to the IMF. In the current geopolitical environment identified by heightening, it is in the very best interests of commodity dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries 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 overall). Consisting of, 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 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

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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 initial period versus 2020-24). with UAE outperforming 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 & high-tech manufacturing information).

Its diversification metrics have stagnated, showing the least enhancement between the initial (2000-04) and final (2020-24) recommendation periods., in spite of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic demand (supported by a strong task pipeline and application) and strong services sector performance.

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

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