Key Drivers Influencing GCC Market Outlooks for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the appealing chances of investing in GCC Infrastructure, driven by the area's growth and government efforts.

Diversification is attain a balanced economy,, Diversification visions and methods exist. The total International EDI is composed of tracking.

For non-diversified nations, when rate of the commodity falls, there is a considerable decrease in government earnings, public costs, present account balance and international reserves: more volatility. The (consisting of major commodity exporters, not limited to simply oil) over the, across 25 signs (including 3 digital indicators). North America, Western Europe and East Asia Pacific countries top EDI scores for many years.

ANSR July GCC PRs 50DR+

Despite the fact that structural reforms and diversification efforts undertaken by the GCC affected MENA's local scores favorably, 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 diversification)., together with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Amongst the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided accelerated diversification strategies of numerous oil-exporting nations. posted a consistent enhancement due to a mix of lowered reliance on fuel exports, reduced exports concentration and a change in the composition of exports.

Will Gulf Industrial Success Exceed Global Benchmarks?

with oil exporters having the lowest ratings (though specific country-specific performance has differed in 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 mean score is the for both 2000 and 2024, and the highest in North America.

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

Sub-Saharan African nations represent around one-third of the overall, followed by Latin America and the Middle East (the latter two together representing over 40% of the total). 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 higher than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks during the period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has 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 period versus 2020-24). with UAE outperforming 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 & modern production information).

Can GCC Industrial Growth Outpace Western Benchmarks?

Its diversity metrics have stagnated, revealing 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 expansion 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 a boost in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base growths and revenue collection performance enhancements", according to the IMF. In the current geopolitical environment defined by intensifying, it is in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations 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). Consisting of, 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 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.

Evaluating GCC Capital Incentives vs Global Markets

shows a significant boost 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 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 actually stagnated, showing the least improvement in between the initial (2000-04) and last (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 project pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base expansions and revenue collection effectiveness improvements", according to the IMF. In the present geopolitical environment characterized by heightening, it is in the finest interests of commodity reliant nations to diversify its export base, exports and trade partners.