Key Drivers Shaping Gulf Economic Outlooks for 2026

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

Diversity is attain a well balanced economy,, Diversification visions and methods exist. The total Worldwide EDI is composed of tracking.

For non-diversified nations, when rate of the product falls, there is a substantial decrease in federal government income, public spending, existing account balance and international reserves: more volatility. The (including major commodity exporters, not restricted to simply oil) over the, across 25 signs (including 3 digital indications). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI scores over the years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts carried out by the GCC impacted MENA's regional ratings positively, it still lags five other local groups., with the top 10 nations having less than a 10-point distinction in ratings (suggesting the strength of diversity)., along with 4 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, provided sped up diversification strategies of lots of oil-exporting countries. published a steady enhancement due to a mix of lowered reliance on fuel exports, minimized exports concentration and a modification in the composition of exports.

Evaluating Regional Capital Climates vs Emerging Peers

with oil exporters having the least expensive ratings (though specific country-specific performance has actually 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. Across all areas, the typical rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among the top ranked, while Mongolia's rating aggravated compared to 2000)., but 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 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 overall). Including, 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+

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 nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

reveals a significant increase 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 exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & modern manufacturing data).

The Impact of FDI on GCC Industrial Transformation

Its diversification metrics have actually stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) referral periods., in spite 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 job pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base expansions and profits collection efficiency enhancements", according to the IMF. In the current geopolitical environment defined by heightening, it is in the best interests of product reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for 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 actually 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 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Vital Factors Shaping GCC Market Forecasts by 2026

shows a substantial 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 outshining in the trade sub-index (supported by current 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 actually stagnated, revealing the least improvement between the preliminary (2000-04) and final (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 need (supported by a strong project pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness enhancements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the finest interests of commodity dependent nations to diversify its export base, exports and trade partners.