Why Industrial Expansion Drives Middle East Stability for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, lays out the appealing chances of investing in GCC Infrastructure, driven by the area's development and government efforts.

Diversification is attain a well balanced economy,, Diversification visions and strategies exist. The overall Global EDI is made up of tracking.

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

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts carried out by the GCC affected MENA's local scores favorably, it still lags five other local groups., with the leading 10 nations having less than a 10-point difference in scores (implying the strength of diversity)., alongside four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Amongst the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided accelerated diversity strategies of numerous oil-exporting nations. published a steady improvement due to a combination of lowered reliance on fuel exports, lowered exports concentration and a change in the composition of exports.

Analyzing GCC Stock Exchange Trends through 2026

with oil exporters having the most affordable scores (though individual country-specific performance has 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. Throughout all areas, the average 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 rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement amongst the top countries. 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 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 2 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 ).

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 rose 17 ranks during the period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

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 preliminary period versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & modern production data).

Why the GCC Becoming Primary Industrial Hub?

Its diversity metrics have stagnated, revealing the least improvement between the initial (2000-04) and last (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 need (supported by a strong task pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base growths and earnings collection effectiveness enhancements", according to the IMF. In the current geopolitical environment characterized by heightening, it is in the best interests of product reliant 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 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 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks throughout the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Frameworks for Asset Allocation for 2026 World Markets

shows a significant increase in average EDI ratings 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 exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & state-of-the-art manufacturing data).

Its diversity metrics have actually stagnated, revealing the least improvement in between the preliminary (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 performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base expansions and revenue collection efficiency enhancements", according to the IMF. In the current geopolitical environment characterized by intensifying, it remains in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.