Why Industrial Diversification Drives Middle East Growth in 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the attractive opportunities of buying GCC Infrastructure, driven by the area's growth and government efforts.

Diversification is accomplish a well balanced economy,, Diversity visions and methods exist. The total Global EDI is composed of tracking.

For non-diversified countries, when cost of the commodity falls, there is a substantial decline in federal government profits, public costs, present account balance and international reserves: more volatility. The (including major product exporters, not limited to simply oil) over the, throughout 25 indications (consisting of 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores for many years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts carried out by the GCC impacted MENA's local scores positively, it still lags 5 other local groups., with the top 10 countries having less than a 10-point difference in scores (suggesting the strength of diversity)., along with four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (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 accelerated diversification strategies of many oil-exporting nations. published a stable enhancement due to a mix of reduced reliance on fuel exports, decreased exports concentration and a modification in the composition of exports.

Key Drivers Shaping GCC Economic Forecasts for 2026

with oil exporters having the most affordable scores (though specific country-specific performance has 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. Throughout all areas, the typical rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was amongst the leading ranked, while Mongolia's score got worse compared to 2000)., however more to do with a "levelling up" at the bottom rather than an enhancement amongst the leading countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA region (with variance most likely driven by the dichotomy within the region 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 representing 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 ).

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 up 24; both Saudi Arabia and Oman rose 17 ranks during the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

shows 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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech production information).

Navigating GCC Stock Market Trends for 2026

Its diversification metrics have actually stagnated, showing the least improvement in between the initial (2000-04) and last (2020-24) reference periods., in spite 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 job pipeline and execution) and strong services sector efficiency.

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

Sub-Saharan African nations 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). 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 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 rose 17 ranks throughout the duration. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Key Drivers Influencing Gulf Economic Forecasts by 2026

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 preliminary period versus 2020-24). with UAE surpassing 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 & modern production information).

Its diversification metrics have actually stagnated, showing the least enhancement in between the initial (2000-04) and last (2020-24) reference 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 project pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "primarily reflecting non-hydrocarbon tax base growths and income collection effectiveness enhancements", according to the IMF. In the current geopolitical environment defined by magnifying, it is in the finest interests of product dependent nations to diversify its export base, exports and trade partners.