How Industrial Diversification Drives Middle East Growth for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the appealing opportunities of purchasing GCC Infrastructure, driven by the area's development and government efforts.

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. There were and The, by developing an index with no qualitative/perceptions signs. The overall International EDI is composed of tracking. As product exporters diversify, lower their reliance on resource leas and possibly score a greater score on the EDI.

For non-diversified nations, when rate of the commodity falls, there is a considerable decline in federal government profits, public costs, bank account balance and global reserves: more volatility. The (including major product exporters, not limited to just oil) over the, across 25 indications (including 3 digital indications). The United States And Canada, Western Europe and East Asia Pacific nations leading EDI scores for many years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's local scores positively, it still lags five other regional groups., with the leading 10 countries having less than a 10-point difference in ratings (suggesting the strength of diversification)., along with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income nation (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 stand apart (when comparing 2024 vs 2000). years, provided sped up diversity strategies of numerous oil-exporting nations. posted a steady enhancement due to a mix of decreased reliance on fuel exports, lowered exports concentration and a change in the structure of exports.

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with oil exporters having the most affordable scores (though individual country-specific performance has actually differed 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. Throughout all areas, the average rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than 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 area (with variation most likely driven by the dichotomy within the region in between the resource-heavy states (e.g.

Sub-Saharan African countries account for 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 5 years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+

and ranked higher than others; UAE is up more than 45 places 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.

shows a substantial increase in average 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 exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & modern production information).

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Its diversification metrics have actually stagnated, showing the least enhancement between the initial (2000-04) and last (2020-24) referral 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 showing non-hydrocarbon tax base expansions and revenue collection performance improvements", according to the IMF. In the current geopolitical environment defined by heightening, it remains in the finest interests of commodity dependent nations to diversify its export base, exports and trade partners.

Sub-Saharan African nations account for around one-third of the total, followed by Latin America and the Middle East (the latter two together accounting for over 40% of the total). Consisting of, 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 ).

and ranked higher than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Roadmap to Gulf Stock Market Trends for 2026

shows a significant boost 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 outperforming 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 production data).

Its diversification metrics have stagnated, showing the least improvement between the initial (2000-04) and final (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth 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 profits, "primarily reflecting non-hydrocarbon tax base growths and revenue collection effectiveness improvements", according to the IMF. In the current geopolitical environment identified by intensifying, it remains in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.