How Economic Diversification Drives GCC Growth in 2026

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

Diversity is accomplish a well balanced economy,, Diversification visions and techniques exist. However there were and The, by developing an index without any qualitative/perceptions indications. The total International EDI is made up of tracking. As product exporters diversify, lower their dependence on resource leas and potentially score a higher score on the EDI.

For non-diversified countries, when price of the commodity falls, there is a considerable decline in government income, public spending, existing account balance and international reserves: more volatility. The (including significant product exporters, not restricted to simply oil) over the, throughout 25 indications (consisting of three digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI scores for many years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts undertaken by the GCC affected MENA's local scores favorably, it still lags 5 other regional groups., with the top 10 nations having less than a 10-point distinction in ratings (indicating the strength of diversity)., together with four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Amongst the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given sped up diversity plans of many oil-exporting nations. posted a consistent enhancement due to a combination 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 specific country-specific efficiency has actually differed 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. Throughout all regions, the median score is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was amongst the leading ranked, while Mongolia's score worsened compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement amongst the leading nations. 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 area 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 2 together accounting for over 40% of the total). Consisting of, 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+

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 even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

shows a significant increase 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 surpassing in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & modern manufacturing information).

Essential Foreign Capital Opportunities across GCC Market

Its diversity metrics have 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 job pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly showing non-hydrocarbon tax base expansions and profits collection effectiveness improvements", according to the IMF. In the existing geopolitical environment identified by intensifying, it is in the finest interests of commodity dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the total). Consisting of, 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 up 24; both Saudi Arabia and Oman rose 17 ranks during the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

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reveals a considerable increase in typical 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 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 & high-tech manufacturing data).

Its diversity metrics have actually stagnated, revealing the least improvement between the preliminary (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 need (supported by a strong job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base expansions and profits collection performance enhancements", according to the IMF. In the present geopolitical environment identified by intensifying, it remains in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.