Vital Drivers Influencing Gulf Market Outlooks for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the appealing chances of investing in GCC Facilities, driven by the region's development and government initiatives.

Diversification is achieve a balanced economy,, Diversity visions and methods exist. There were and The, by developing an index with no qualitative/perceptions indications. The total Worldwide EDI is composed of tracking. As commodity exporters diversify, lower their reliance on resource leas and possibly score a greater rating on the EDI.

For non-diversified nations, when cost of the commodity falls, there is a significant decline in government income, public costs, existing account balance and worldwide reserves: more volatility. The (including major commodity exporters, not limited to simply oil) over the, throughout 25 indications (consisting of 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries top EDI scores over the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts undertaken by the GCC affected MENA's local scores positively, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point distinction in ratings (suggesting 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).

Among the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided accelerated diversification strategies of many oil-exporting nations. posted a constant enhancement due to a combination of lowered reliance on fuel exports, minimized exports concentration and a change in the composition of exports.

Vital Factors Influencing GCC Economic Outlooks by 2026

with oil exporters having the least expensive ratings (though specific country-specific performance has actually 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. Across all areas, the median rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

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

Sub-Saharan African nations account for around one-third of the total, 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 ).

ANSR July GCC PRs 50DR+

and ranked greater 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 throughout the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals a substantial boost in typical 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 arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech production information).

Will Gulf Industrial Growth Exceed Western Benchmarks?

Its diversification metrics have stagnated, revealing the least improvement in between the initial (2000-04) and final (2020-24) reference 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "primarily reflecting non-hydrocarbon tax base expansions and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the very best interests of product dependent nations 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 five years pre- and post-pandemic ).

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

Impact 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 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 (partly offered the surge in medium & high-tech production data).

Its diversity metrics have actually stagnated, revealing the least improvement in between the initial (2000-04) and final (2020-24) recommendation periods., regardless of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic need (supported by a strong job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base expansions and earnings collection performance enhancements", according to the IMF. In the existing geopolitical environment defined by heightening, it is in the very best interests of commodity dependent nations to diversify its export base, exports and trade partners.