The Impact of FDI on GCC Industrial Development thumbnail

The Impact of FDI on GCC Industrial Development

Published en
5 min read


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

Diversification is attain a well balanced economy,, Diversity visions and methods exist. The overall International EDI is made up of tracking.

Where Global Capital Finds a Home in the GCC by 2026

For non-diversified nations, when rate of the commodity falls, there is a considerable decrease in government income, public spending, current account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not restricted to simply oil) over the, throughout 25 indications (including 3 digital indicators). North America, Western Europe and East Asia Pacific countries top EDI ratings over the years.

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


Even though structural reforms and diversity efforts undertaken by the GCC impacted MENA's local ratings favorably, it still lags five other regional groups., with the leading 10 countries having less than a 10-point difference in scores (suggesting the strength of diversity)., alongside four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Among 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 diversity plans of many oil-exporting nations. published a steady enhancement due to a mix of minimized dependence on fuel exports, reduced exports concentration and a change in the structure of exports.

Building Sustainable Financial Structures with GCC Securities

with oil exporters having the lowest ratings (though private country-specific performance has varied gradually). 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 greatest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's score aggravated compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among the top 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 difference likely driven by the dichotomy within the area 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 two together accounting for 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 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 locations in 2024 compared to 2000 while Qatar climbed up 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 transformation has actually stalled.

shows a substantial boost in typical 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 exceeding in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & modern manufacturing data).

Benefits of Expanding Manufacturing Ventures in the Middle East

Its diversification metrics have stagnated, showing the least improvement between the initial (2000-04) and last (2020-24) reference 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 task pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and profits collection efficiency improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it is in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

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

How Economic Diversification Boosts Middle East Growth for 2026

shows a substantial increase in typical 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 exceeding 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 manufacturing information).

Its diversity metrics have stagnated, showing the least improvement between the initial (2000-04) and final (2020-24) reference periods., in spite 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 job pipeline and application) and strong services sector efficiency.

Where Global Capital Finds a Home in the GCC by 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base growths and profits collection performance improvements", according to the IMF. In the existing geopolitical environment identified by heightening, it remains in the finest interests of product dependent nations to diversify its export base, exports and trade partners.

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