Guide to GCC Stock Equity Success for 2026 thumbnail

Guide to GCC Stock Equity Success for 2026

Published Aug 24, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, details the appealing chances of investing in GCC Infrastructure, driven by the area's growth and federal 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 indications. The total Global EDI is composed of tracking. As commodity exporters diversify, lower their dependence on resource leas and possibly score a higher score on the EDI.

Why Economic Expansion Drives Middle East Stability for 2026

For non-diversified nations, when cost of the commodity falls, there is a considerable decrease in government earnings, public spending, bank account balance and global reserves: more volatility. The (consisting of significant commodity exporters, not limited to simply oil) over the, across 25 indicators (including 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores for many 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 ratings positively, it still lags 5 other regional groups., with the top 10 nations having less than a 10-point distinction in scores (indicating the strength of diversity)., alongside 4 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 performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided accelerated diversification strategies of lots of oil-exporting nations. published a consistent improvement due to a mix of decreased reliance on fuel exports, decreased exports concentration and a change in the structure of exports.

Optimizing Capital Pipelines for 2026 GCC Outlook

with oil exporters having the most affordable ratings (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 median score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's score aggravated compared to 2000)., however more to do with a "levelling up" at the bottom instead of an improvement amongst 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 area (with difference likely driven by the dichotomy within the area 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+ANSR July GCC PRs 50DR+


and ranked higher 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 during the period. The caught 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 initial period versus 2020-24). with UAE outperforming in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & modern manufacturing information).

Can Gulf Industrial Success Outpace Western Benchmarks?

Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and final (2020-24) referral periods., regardless 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 project pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the very best interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries 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 ).

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 trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Is GCC Emerging as Primary Investment Hub?

reveals a considerable boost 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 agreements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & modern manufacturing data).

Its diversification metrics have actually stagnated, showing the least enhancement 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 demand (supported by a strong project pipeline and implementation) and strong services sector efficiency.

The 2026 Investment Landscape of Arabia

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

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