Vital Drivers Shaping GCC Economic Forecasts for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the appealing chances of purchasing GCC Infrastructure, driven by the region's growth and federal government efforts.

Diversity is accomplish a balanced economy,, Diversity visions and methods exist. But there were and The, by developing an index without any qualitative/perceptions signs. The overall International EDI is made up of tracking. As product exporters diversify, lower their dependence on resource rents and potentially score a higher rating on the EDI.

For non-diversified nations, when cost of the product falls, there is a considerable decline in federal government earnings, public spending, bank account balance and worldwide reserves: more volatility. The (consisting of significant commodity exporters, not limited to simply oil) over the, across 25 indicators (consisting of three digital indications). North America, Western Europe and East Asia Pacific nations leading EDI ratings for many years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversification efforts carried out by the GCC affected MENA's local scores favorably, it still lags five other local groups., with the top 10 nations having less than a 10-point distinction in scores (suggesting the strength of diversification)., alongside four upper-middle earnings (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 performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given sped up diversity plans of lots of oil-exporting countries. published a steady improvement due to a combination of decreased dependence on fuel exports, minimized exports concentration and a change in the composition of exports.

Analyzing Middle East Equity Market Shifts for 2026

with oil exporters having the least expensive scores (though specific country-specific efficiency has actually differed 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 areas, the median score is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was among the leading ranked, while Mongolia's rating got worse compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among the leading 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 variance 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 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+

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 increased 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 actually stalled.

reveals a considerable 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 offered the surge in medium & modern production data).

Why the GCC Becoming Primary Industrial Hub?

Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and final (2020-24) reference periods., regardless of 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 execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment characterized by heightening, it remains in the very best interests of commodity dependent nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for 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). 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 greater than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

Why the GCC Emerging as Global Investment Powerhouse?

shows 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 outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & state-of-the-art manufacturing information).

Its diversification metrics have stagnated, revealing the least enhancement in 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 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 income, "mainly showing non-hydrocarbon tax base growths and revenue collection effectiveness improvements", according to the IMF. In the existing geopolitical environment defined by magnifying, it is in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.