Role of Capital on GCC Industrial Transformation thumbnail

Role of Capital on GCC Industrial Transformation

Published Aug 19, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, details the appealing opportunities of buying GCC Infrastructure, driven by the region's growth and government efforts.

Diversification is accomplish a well balanced economy,, Diversification visions and methods exist. The total Global EDI is composed of tracking.

Advantages to Strategic Capital Allocation in 2026

For non-diversified countries, when cost of the commodity falls, there is a substantial decrease in federal government earnings, public spending, existing account balance and international reserves: more volatility. The (including major commodity exporters, not restricted to just oil) over the, across 25 signs (consisting of three digital indications). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI scores throughout the years.

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


Despite the fact that structural reforms and diversity efforts carried out by the GCC affected MENA's local scores positively, it still lags 5 other local groups., with the leading 10 countries having less than a 10-point distinction in ratings (suggesting the strength of diversity)., together with 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 efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, offered sped up diversity strategies of many oil-exporting nations. posted a consistent improvement due to a combination of lowered reliance on fuel exports, reduced exports concentration and a change in the structure of exports.

Evaluating Regional Investment Incentives vs Global Peers

with oil exporters having the most affordable scores (though private country-specific efficiency has actually 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 rating 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 rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement among the leading nations. 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 variance most likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries represent 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 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+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 up 24; both Saudi Arabia and Oman increased 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.

reveals a substantial boost in average 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 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 & state-of-the-art production data).

Top Foreign Investment Opportunities within GCC Market

Its diversity metrics have actually stagnated, showing the least improvement between the initial (2000-04) and last (2020-24) reference 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 job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "primarily showing 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 best interests of commodity dependent countries to diversify its export base, exports and trade partners.

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

Is the Middle East Emerging as Primary Investment Hub?

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 initial duration versus 2020-24). with UAE exceeding 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 improvement in between the preliminary (2000-04) and last (2020-24) reference periods., despite 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 implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mostly showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment characterized by intensifying, it is in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

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