Why Economic Expansion Drives Middle East Stability in 2026 thumbnail

Why Economic Expansion Drives Middle East Stability in 2026

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, describes the attractive chances of buying GCC Infrastructure, driven by the region's growth and federal government efforts.

Diversity is attain a balanced economy,, Diversity visions and strategies exist. But there were and The, by creating an index with no qualitative/perceptions signs. The overall Global EDI is made up of tracking. As product exporters diversify, lower their dependence on resource rents and potentially score a greater score on the EDI.

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For non-diversified countries, when cost of the commodity falls, there is a considerable decrease in government income, public spending, bank account balance and international reserves: more volatility. The (consisting of significant product exporters, not restricted to just oil) over the, across 25 signs (including 3 digital indications). North America, Western Europe and East Asia Pacific nations leading EDI ratings throughout the years.

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


Although structural reforms and diversity efforts undertaken by the GCC affected MENA's regional scores favorably, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversification)., 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. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, given accelerated diversity strategies of many oil-exporting nations. published a consistent improvement due to a mix of lowered dependence on fuel exports, reduced exports concentration and a change in the composition of exports.

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with oil exporters having the lowest scores (though individual country-specific performance has actually 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. Across all areas, the typical rating is the for both 2000 and 2024, and the greatest in North America.

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

Sub-Saharan African countries 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 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 greater than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks throughout the period. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals a considerable boost in typical 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 outshining in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & modern production information).

Impact of FDI on Regional Economic Development

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and income collection efficiency improvements", according to the IMF. In the present geopolitical environment identified by intensifying, it remains in the best interests of commodity dependent nations to diversify its export base, exports and trade partners.

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 total). Including, 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks throughout the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Strategies for Capital Diversification for 2026 World Markets

shows 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 initial period 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 offered the rise in medium & modern production information).

Its diversity metrics have stagnated, revealing the least improvement between the preliminary (2000-04) and last (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 task pipeline and execution) and strong services sector performance.

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