Frameworks for Capital Diversification in 2026 World Markets thumbnail

Frameworks for Capital Diversification in 2026 World Markets

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, outlines the attractive opportunities of buying GCC Facilities, driven by the region's growth and federal government initiatives.

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. But 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 rents and potentially score a greater score on the EDI.

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

ANSR July GCC PRs 50DR+ANSR July GCC PRs 50DR+


Even though structural reforms and diversification efforts undertaken by the GCC affected MENA's regional scores favorably, it still lags five other regional groups., with the leading 10 nations having less than a 10-point difference in ratings (implying the strength of diversity)., along with 4 upper-middle income (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 stick out (when comparing 2024 vs 2000). years, offered accelerated diversity plans of many oil-exporting countries. posted a stable enhancement due to a mix of reduced dependence on fuel exports, decreased exports concentration and a change in the composition of exports.

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with oil exporters having the most affordable scores (though private country-specific performance has actually 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 average rating 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 intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an enhancement 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 area (with difference 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 two together accounting for over 40% of the total). 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+ANSR July GCC PRs 50DR+


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 trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

reveals a significant boost in average 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 current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly offered the rise in medium & modern manufacturing information).

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Its diversity metrics have actually stagnated, revealing the least enhancement in between the preliminary (2000-04) and last (2020-24) referral periods., in spite 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 income, "primarily reflecting non-hydrocarbon tax base growths and earnings collection effectiveness improvements", according to the IMF. In the present geopolitical environment identified by intensifying, it remains in the finest interests of product dependent 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 two 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 ).

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 period. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

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reveals a significant boost in average 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 current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & high-tech production data).

Its diversification metrics have stagnated, revealing the least improvement in between the initial (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 application) and strong services sector efficiency.

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Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base expansions and profits collection performance enhancements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.