Evaluating GCC Investment Incentives vs Emerging Markets thumbnail

Evaluating GCC Investment Incentives vs Emerging Markets

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5 min read


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

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

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For non-diversified countries, when rate of the commodity falls, there is a substantial decline in federal government revenue, public spending, bank account balance and global reserves: more volatility. The (including major commodity exporters, not limited to just oil) over the, throughout 25 indications (including three digital signs). 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+


Although structural reforms and diversity efforts carried out by the GCC affected MENA's local ratings favorably, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point difference in scores (indicating the strength of diversity)., alongside 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. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, offered sped up diversity plans of many oil-exporting countries. posted a steady improvement due to a mix of decreased reliance on fuel exports, minimized exports concentration and a change in the structure of exports.

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with oil exporters having the least expensive scores (though individual country-specific performance has actually 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 regions, the typical rating 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 got worse 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 region (with variation 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 two together accounting for over 40% of the overall). Including, 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+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 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals 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 initial duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & state-of-the-art production information).

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Its diversification metrics have actually stagnated, revealing the least improvement between the preliminary (2000-04) and final (2020-24) referral 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 efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and earnings collection performance improvements", according to the IMF. In the present geopolitical environment characterized by magnifying, it is in the best interests of product dependent countries 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 2 together representing over 40% of the overall). Including, there has been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the 5 years pre- and post-pandemic ).

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

Can GCC Industrial Success Outpace Western Benchmarks?

shows 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & modern production information).

Its diversification metrics have stagnated, showing the least enhancement between the initial (2000-04) and last (2020-24) reference periods., regardless of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic demand (supported by a strong project pipeline and implementation) and strong services sector performance.

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

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