Why Economic Diversification Boosts Middle East Stability in 2026

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

Diversity is attain a well balanced economy,, Diversity visions and techniques exist. There were and The, by developing an index with no qualitative/perceptions signs. The total Worldwide EDI is made up of tracking. As product exporters diversify, lower their dependence on resource leas and potentially score a greater rating on the EDI.

For non-diversified countries, when cost of the commodity falls, there is a considerable decline in government earnings, public spending, bank account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not restricted to just oil) over the, across 25 signs (including 3 digital indicators). North America, Western Europe and East Asia Pacific countries leading EDI ratings for many years.

ANSR July GCC PRs 50DR+

Despite the fact that structural reforms and diversification efforts undertaken by the GCC impacted MENA's local ratings positively, it still lags five other regional groups., with the top 10 countries having less than a 10-point difference in scores (implying the strength of diversification)., alongside four 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, provided sped up diversification strategies of many oil-exporting nations. posted a constant enhancement due to a combination of reduced dependence on fuel exports, lowered exports concentration and a change in the composition of exports.

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with oil exporters having the most affordable ratings (though specific country-specific efficiency has actually 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 regions, the typical score is the for both 2000 and 2024, and the greatest in The United States and Canada.

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

Sub-Saharan African countries represent around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the overall). 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+

and ranked greater than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed up 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 improvement has actually stalled.

shows a considerable 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially offered the rise in medium & modern manufacturing information).

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Its diversity metrics have stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) recommendation periods., regardless 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 project pipeline and execution) and strong services sector efficiency.

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 characterized by magnifying, it is in the finest interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations 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). Including, there has been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the five 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 duration. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

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reveals 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 period versus 2020-24). with UAE outperforming in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & modern manufacturing data).

Its diversity metrics have actually stagnated, showing the least enhancement between the preliminary (2000-04) and last (2020-24) referral periods., regardless 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 job pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base growths and income collection performance improvements", according to the IMF. In the current geopolitical environment characterized by magnifying, it remains in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.