Vital Drivers Shaping Gulf Market Outlooks by 2026 thumbnail

Vital Drivers Shaping Gulf Market Outlooks by 2026

Published Aug 22, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the attractive opportunities of buying GCC Facilities, driven by the area's growth and federal government initiatives.

Diversity is accomplish a balanced economy,, Diversification visions and methods exist. The total Global EDI is composed of tracking.

For non-diversified nations, when cost of the product falls, there is a significant decline in federal government income, public spending, present account balance and global reserves: more volatility. The (including significant commodity exporters, not restricted to simply oil) over the, across 25 indicators (consisting of 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings for many years.

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


Although structural reforms and diversity efforts undertaken by the GCC affected MENA's local ratings positively, it still lags 5 other local groups., with the top 10 countries having less than a 10-point difference in ratings (suggesting the strength of diversification)., alongside 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 out (when comparing 2024 vs 2000). years, provided accelerated diversity plans of many oil-exporting countries. published a stable improvement due to a mix of decreased reliance on fuel exports, minimized exports concentration and a modification in the structure of exports.

Upcoming GCC Investment Shifts for 2026 World Markets

with oil exporters having the most affordable ratings (though individual country-specific efficiency has 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. Across all regions, the typical 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 aggravated compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement amongst 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 region in between the resource-heavy states (e.g.

Sub-Saharan African nations account for 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 actually 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 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 change has stalled.

reveals 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 duration 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 (partially offered the rise in medium & state-of-the-art manufacturing information).

Strategies for Asset Allocation in 2026 Global Markets

Its diversification metrics have actually stagnated, revealing the least improvement in between the initial (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 job pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "primarily reflecting non-hydrocarbon tax base growths and income collection performance improvements", according to the IMF. In the present geopolitical environment identified by magnifying, it is in the very best interests of commodity dependent nations 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 2 together representing over 40% of the overall). Consisting of, 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 up 24; both Saudi Arabia and Oman increased 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 stalled.

Refining Investment Strategies for the Next-Gen Gulf Economy

shows a significant boost in typical EDI ratings 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 surpassing in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & state-of-the-art production data).

Its diversification metrics have stagnated, revealing the least enhancement in between the initial (2000-04) and final (2020-24) recommendation 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 job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily reflecting non-hydrocarbon tax base growths and earnings collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment characterized by magnifying, it remains in the finest interests of commodity reliant nations to diversify its export base, exports and trade partners.

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