Frameworks for Capital Allocation for 2026 World Markets thumbnail

Frameworks for Capital Allocation for 2026 World Markets

Published Aug 17, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, details the attractive chances of purchasing GCC Infrastructure, driven by the region's growth and government initiatives.

Diversity is achieve a well balanced economy,, Diversification visions and techniques exist. The total Worldwide EDI is composed of tracking.

Essential Industrial Shifts for the Future

For non-diversified countries, when price of the commodity falls, there is a substantial decrease in government income, public spending, bank account balance and global reserves: more volatility. The (including significant product exporters, not limited to just oil) over the, across 25 indications (consisting of 3 digital signs). North America, Western Europe and East Asia Pacific nations top EDI scores for many 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 local ratings favorably, it still lags five other local groups., with the leading 10 countries having less than a 10-point distinction in scores (implying the strength of diversity)., together with four upper-middle earnings (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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity strategies of numerous oil-exporting nations. posted a constant enhancement due to a combination of minimized dependence on fuel exports, lowered exports concentration and a change in the composition of exports.

Benefits of Scaling Industrial Ventures across GCC

with oil exporters having the most affordable scores (though private 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 score is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's score worsened compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement amongst the leading nations. 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 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 total, followed by Latin America and the Middle East (the latter 2 together representing 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 5 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 places in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

shows 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 surpassing 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 & high-tech manufacturing information).

The Role of Capital on GCC Industrial Development

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

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the current geopolitical environment defined by magnifying, it is in the very best interests of commodity 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 accounting for 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 five 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 caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

Why the GCC Emerging as Global Investment Hub?

reveals 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 duration versus 2020-24). with UAE surpassing 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 & modern manufacturing information).

Its diversity metrics have actually stagnated, showing the least improvement between the preliminary (2000-04) and final (2020-24) referral 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment identified by magnifying, it is in the very best interests of product reliant nations to diversify its export base, exports and trade partners.

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