Frameworks for Capital Allocation in 2026 Global Markets thumbnail

Frameworks for Capital Allocation in 2026 Global Markets

Published Aug 16, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, details the attractive chances of investing in GCC Infrastructure, driven by the region's development and federal government efforts.

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

For non-diversified nations, when rate of the product falls, there is a significant decline in federal government profits, public costs, current account balance and international reserves: more volatility. The (including significant commodity exporters, not limited to simply oil) over the, across 25 signs (consisting of three digital indicators). North America, Western Europe and East Asia Pacific countries leading EDI ratings over 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 ratings favorably, it still lags five other local groups., with the top 10 nations having less than a 10-point difference in scores (implying the strength of diversification)., together 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. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided accelerated diversity plans of many oil-exporting countries. published a constant improvement due to a combination of reduced reliance on fuel exports, decreased exports concentration and a change in the structure of exports.

Creating Resilient Investment Structures with GCC Securities

with oil exporters having the most affordable scores (though specific country-specific efficiency has actually varied 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. Across all regions, the mean score is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's score intensified compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement amongst 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 region (with difference most 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 accounting for 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 five years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+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 increased 17 ranks during the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

reveals a substantial increase in typical EDI scores 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 surpassing 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 production information).

How Economic Expansion Drives Middle East Stability for 2026

Its diversity metrics have stagnated, showing the least enhancement between the initial (2000-04) and final (2020-24) referral periods., despite 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 application) and strong services sector performance.

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 current geopolitical environment defined by magnifying, it is in the very best interests of commodity dependent 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 overall). 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 ).

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

Analyzing GCC Stock Market Shifts through 2026

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 initial duration versus 2020-24). with UAE outshining in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & state-of-the-art production data).

Its diversification metrics have stagnated, showing the least improvement in between the preliminary (2000-04) and final (2020-24) reference periods., despite 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.

Assessing GCC Investment Potential for 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base growths and income collection effectiveness enhancements", according to the IMF. In the present geopolitical environment defined by heightening, it remains in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.

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