Key Factors Influencing GCC Economic Outlooks by 2026 thumbnail

Key Factors Influencing GCC Economic Outlooks by 2026

Published en
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, describes the appealing chances of buying GCC Facilities, driven by the area's development and government initiatives.

Diversity is accomplish a balanced economy,, Diversification visions and strategies exist. The overall Worldwide EDI is made up of tracking.

For non-diversified countries, when price of the commodity falls, there is a considerable decline in federal government revenue, public spending, present account balance and global reserves: more volatility. The (consisting of major commodity exporters, not limited to just oil) over the, throughout 25 indications (consisting of 3 digital indications). North America, Western Europe and East Asia Pacific nations top EDI ratings for many years.

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


Even though structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional ratings favorably, it still lags 5 other local groups., with the top 10 countries having less than a 10-point difference in ratings (indicating the strength of diversification)., along with 4 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 stand out (when comparing 2024 vs 2000). years, offered accelerated diversification strategies of many oil-exporting countries. published a steady enhancement due to a mix of minimized dependence on fuel exports, decreased exports concentration and a modification in the structure of exports.

Frameworks for Capital Allocation in 2026 Global Markets

with oil exporters having the least expensive ratings (though individual country-specific performance has 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. Across all areas, the average score is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was among the top ranked, while Mongolia's score worsened compared to 2000)., but more to do with a "levelling up" at the bottom rather than an improvement among the top 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 variation likely driven by the dichotomy within the area between the resource-heavy states (e.g.

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 overall). Including, there has actually 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 up 24; both Saudi Arabia and Oman rose 17 ranks throughout the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

shows a considerable boost in average EDI scores 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 outshining in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the rise in medium & state-of-the-art manufacturing data).

Role of Capital on Regional Economic Transformation

Its diversity metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and last (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 demand (supported by a strong project pipeline and implementation) 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 income collection efficiency improvements", according to the IMF. In the existing geopolitical environment characterized by heightening, it remains in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter 2 together representing 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 throughout the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

The Role of Capital on GCC Industrial Development

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 preliminary 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 provided the surge in medium & state-of-the-art manufacturing data).

Its diversification metrics have stagnated, revealing the least improvement 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 demand (supported by a strong job pipeline and application) and strong services sector efficiency.

Sovereign Wealth Funds: The New Architects of Regional Security

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment defined by heightening, it remains in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.