Advantages of Scaling Manufacturing Ventures across GCC thumbnail

Advantages of Scaling Manufacturing Ventures across GCC

Published Aug 24, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, lays out the appealing chances of purchasing GCC Facilities, driven by the region's development and government initiatives.

Diversification is attain a balanced economy,, Diversity visions and methods exist. However there were and The, by creating an index without any qualitative/perceptions signs. The overall Global EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource rents and possibly score a greater rating on the EDI.

Why Industrial Diversification Will Transform Arabian Markets

For non-diversified nations, when rate of the product falls, there is a considerable decrease in federal government revenue, public costs, present account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not restricted to just oil) over the, throughout 25 signs (consisting of 3 digital indicators). North America, Western Europe and East Asia Pacific nations top EDI ratings over the years.

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


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

Among the e. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, given sped up diversification strategies of many oil-exporting countries. published a stable enhancement due to a mix of reduced dependence on fuel exports, minimized exports concentration and a change in the structure of exports.

Frameworks for Asset Diversification in 2026 World Markets

with oil exporters having the most affordable ratings (though individual country-specific efficiency has actually varied 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 mean rating 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 rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement 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 most likely driven by the dichotomy within the region in 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 2 together accounting for over 40% of the total). 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 ).

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 24; both Saudi Arabia and Oman rose 17 ranks throughout the duration. The trapped or worse off nations 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 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 (partially given the rise in medium & high-tech production data).

Evaluating GCC Investment Climates vs Emerging Markets

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 expansion was supported by the GCC's robust domestic demand (supported by a strong job pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base growths and income collection efficiency improvements", according to the IMF. In the existing geopolitical environment defined by heightening, it remains in the very best interests of product reliant 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 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 ).

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

How Economic Diversification Boosts Middle East Stability for 2026

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 preliminary 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 rise in medium & modern manufacturing information).

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 need (supported by a strong project pipeline and execution) and strong services sector performance.

Fiscal Growth and Investment in the 2026 GCC

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily reflecting non-hydrocarbon tax base growths and earnings collection performance improvements", according to the IMF. In the current geopolitical environment defined by magnifying, it remains in the finest interests of product reliant countries to diversify its export base, exports and trade partners.

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