How Industrial Diversification Boosts Middle East Stability in 2026

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

Diversity is achieve a well balanced economy,, Diversity visions and techniques exist. The total Worldwide EDI is composed of tracking.

For non-diversified countries, when rate of the commodity falls, there is a substantial decline in federal government revenue, public costs, bank account balance and international reserves: more volatility. The (consisting of significant commodity exporters, not limited to just oil) over the, across 25 signs (consisting of three digital signs). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings for many years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's regional scores favorably, it still lags five other local groups., with the top 10 nations having less than a 10-point difference in scores (indicating the strength of diversity)., along with 4 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. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided sped up diversity plans of lots of oil-exporting nations. posted a constant enhancement due to a mix of decreased dependence on fuel exports, decreased exports concentration and a modification in the composition of exports.

The Role of FDI on GCC Industrial Development

with oil exporters having the most affordable scores (though individual country-specific efficiency has differed 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 median score is the for both 2000 and 2024, and the greatest in The United States and Canada.

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 rather than an enhancement 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 variance most 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 overall, followed by Latin America and the Middle East (the latter two together accounting for 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+

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

reveals a substantial boost in average 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 outshining in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech manufacturing data).

Roadmap to GCC Stock Equity Trends in 2026

Its diversification metrics have actually stagnated, revealing the least improvement between the preliminary (2000-04) and final (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 demand (supported by a strong project pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base growths and income collection performance improvements", according to the IMF. In the current geopolitical environment characterized by intensifying, it remains in the very best interests of commodity dependent nations 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 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 five years pre- and post-pandemic ).

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

Roadmap to GCC Stock Equity Trends in 2026

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 outperforming in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & high-tech production information).

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

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly reflecting non-hydrocarbon tax base growths and revenue collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment defined by intensifying, it is in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.