Why Industrial Diversification Boosts Middle East Stability in 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the attractive opportunities of buying GCC Infrastructure, driven by the area's growth and federal government efforts.

Diversification is achieve a well balanced economy,, Diversity visions and methods exist. There were and The, by developing an index with no qualitative/perceptions signs. The general Global EDI is composed of tracking. As product exporters diversify, lower their dependence on resource rents and potentially score a higher rating on the EDI.

For non-diversified countries, when rate of the commodity falls, there is a substantial decrease in government earnings, public costs, bank account balance and global reserves: more volatility. The (including major commodity exporters, not limited to simply oil) over the, across 25 indications (consisting of three digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores throughout the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts undertaken by the GCC affected MENA's local scores favorably, it still lags five other regional groups., with the top 10 countries having less than a 10-point distinction in scores (implying the strength of diversity)., together 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).

Among the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given accelerated diversity strategies of many oil-exporting nations. posted a constant improvement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a modification in the composition of exports.

Comparing GCC Capital Incentives vs Emerging Markets

with oil exporters having the most affordable scores (though specific country-specific performance has differed over 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 highest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's rating got worse compared to 2000)., however more to do with a "levelling up" at the bottom instead of an improvement amongst the top 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 difference most likely driven by the dichotomy within the region 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 accounting for over 40% of the overall). 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 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 trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

reveals a considerable 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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech manufacturing data).

Guide to GCC Stock Equity Trends for 2026

Its diversification metrics have stagnated, revealing the least improvement in between the initial (2000-04) and last (2020-24) recommendation 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 task pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly showing non-hydrocarbon tax base growths and income collection effectiveness improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the very best interests of commodity reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter 2 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 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 worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Why GCC Emerging as Primary Industrial 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 outperforming 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 & state-of-the-art manufacturing data).

Its diversification metrics have actually stagnated, revealing the least enhancement 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 job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base expansions and income collection efficiency improvements", according to the IMF. In the current geopolitical environment characterized by magnifying, it remains in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.