Optimizing Capital Strategies for Next-Gen GCC Economy thumbnail

Optimizing Capital Strategies for Next-Gen GCC Economy

Published Aug 18, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, describes the attractive chances of investing in GCC Infrastructure, driven by the area's growth and federal government efforts.

Diversification is attain a balanced economy,, Diversity visions and strategies exist. The overall Worldwide EDI is composed of tracking.

Benefits of Investing in GCC Markets

For non-diversified countries, when cost of the product falls, there is a considerable decline in government earnings, public spending, bank account balance and global reserves: more volatility. The (consisting of significant product exporters, not restricted to simply oil) over the, throughout 25 signs (consisting of 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations leading EDI ratings for many years.

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


Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's local ratings 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 diversity)., along with 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 efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided accelerated diversity strategies of lots of oil-exporting countries. posted a steady improvement due to a mix of lowered dependence on fuel exports, minimized exports concentration and a modification in the structure of exports.

Benefits of Expanding Industrial Ventures across Middle East

with oil exporters having the most affordable scores (though private country-specific efficiency has varied 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 regions, 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 score aggravated 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 irregularity is seen in South Asia in 2000 and the most in the MENA area (with variation most likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter 2 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 ).

ANSR July GCC PRs 50DR+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 throughout the duration. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

shows a considerable boost in typical EDI ratings 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 exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & high-tech manufacturing information).

Future GCC Investment Shifts for 2026 Global Markets

Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (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 need (supported by a strong task pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mostly reflecting non-hydrocarbon tax base growths and profits collection performance enhancements", according to the IMF. In the existing geopolitical environment defined by magnifying, it is in the very best interests of commodity dependent countries 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 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 ).

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

Evaluating GCC Capital Incentives vs Emerging Peers

shows a substantial 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 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 (partially provided the surge in medium & modern production information).

Its diversity metrics have stagnated, revealing the least enhancement in between the initial (2000-04) and last (2020-24) reference 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 application) and strong services sector performance.

Assessing GCC Market Resilience for 2026

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mainly reflecting non-hydrocarbon tax base expansions and earnings collection efficiency enhancements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the finest interests of commodity reliant nations to diversify its export base, exports and trade partners.

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