Evaluating Regional Capital Incentives vs Global Peers thumbnail

Evaluating Regional Capital Incentives vs Global Peers

Published Aug 20, 26
5 min read


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

Diversification is accomplish a balanced economy,, Diversity visions and techniques exist. There were and The, by producing an index with no qualitative/perceptions signs. The total Global EDI is composed of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a higher rating on the EDI.

Positioning Regional Investments for 2026 Shifts

For non-diversified nations, when price of the product falls, there is a considerable decline in federal government revenue, public costs, bank account balance and worldwide reserves: more volatility. The (consisting of significant product exporters, not limited to just oil) over the, across 25 signs (including 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings over the years.

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


Although structural reforms and diversification efforts carried out by the GCC impacted MENA's regional ratings positively, it still lags five other local groups., with the leading 10 nations having less than a 10-point difference in scores (indicating the strength of diversification)., together with four upper-middle earnings (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 efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, provided sped up diversification strategies of many oil-exporting nations. posted a constant enhancement due to a combination of reduced dependence on fuel exports, minimized exports concentration and a change in the structure of exports.

Future Middle East Market Shifts for 2026 Global Markets

with oil exporters having the most affordable scores (though private country-specific efficiency has actually varied 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 The United States and Canada.

In 2024, the (China was amongst the top ranked, while Mongolia's rating intensified compared to 2000)., however 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 irregularity is seen in South Asia in 2000 and the most in the MENA region (with variance most likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African nations represent around one-third of the total, followed by Latin America and the Middle East (the latter two together representing over 40% of the total). 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 ).

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


and ranked greater 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 throughout the period. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

shows 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 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 offered the surge in medium & state-of-the-art manufacturing data).

Why Industrial Expansion Drives Middle East Stability for 2026

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and revenue collection performance enhancements", according to the IMF. In the present geopolitical environment identified by heightening, it is in the finest interests of product reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent around one-third of the overall, 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 higher 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 period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Roadmap to Gulf Stock Equity Trends for 2026

shows 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 duration versus 2020-24). with UAE outperforming 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 & high-tech production information).

Its diversity metrics have stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) referral 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 execution) and strong services sector performance.

Positioning Regional Investments for 2026 Shifts

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

Share us on...

Latest Posts

Why Foreign Capital Inflows Change in 2026?

Published Aug 28, 26
3 min read

Key Stock Market Trends Across the GCC

Published Aug 28, 26
4 min read