Creating Sustainable Investment Portfolios with GCC Assets thumbnail

Creating Sustainable Investment Portfolios with GCC Assets

Published Aug 23, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, lays out the attractive chances of purchasing GCC Infrastructure, driven by the region's growth and government initiatives.

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

Key Drivers Shaping Gulf Market Forecasts for 2026

For non-diversified nations, when cost of the product falls, there is a substantial decrease in government profits, public costs, bank account balance and global reserves: more volatility. The (including significant commodity exporters, not restricted to simply oil) over the, throughout 25 indications (including three digital signs). 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+


Although structural reforms and diversity efforts carried out by the GCC affected MENA's local ratings positively, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point distinction in scores (implying the strength of diversity)., alongside 4 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. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, offered accelerated diversification plans of many oil-exporting nations. posted a steady improvement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a modification in the structure of exports.

Why GCC Becoming Primary Investment Powerhouse?

with oil exporters having the lowest ratings (though specific country-specific efficiency has 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 areas, the mean score 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 rating got worse compared to 2000)., but 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 variability is seen in South Asia in 2000 and the most in the MENA region (with variation most likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries represent 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 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 increased 17 ranks during the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

reveals 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 agreements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & state-of-the-art manufacturing information).

Roadmap to Gulf Stock Market Success for 2026

Its diversification metrics have actually stagnated, revealing the least enhancement in between the initial (2000-04) and last (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic need (supported by a strong task pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mainly reflecting non-hydrocarbon tax base expansions and profits collection effectiveness improvements", according to the IMF. In the present geopolitical environment characterized by intensifying, it is in the finest interests of product dependent countries to diversify its export base, exports and trade partners.

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

The Role of FDI on GCC Industrial Development

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 preliminary period versus 2020-24). with UAE outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & modern production data).

Its diversification metrics have actually stagnated, revealing the least enhancement between the initial (2000-04) and final (2020-24) reference 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 task pipeline and implementation) and strong services sector efficiency.

Key Drivers Shaping Gulf Market Forecasts for 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base expansions and income collection performance enhancements", according to the IMF. In the current geopolitical environment defined by intensifying, it is in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.

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