Will Gulf Non-Oil Growth Outpace Global Benchmarks?

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, details the appealing opportunities of buying GCC Facilities, driven by the area's development and federal government efforts.

Diversification is accomplish a balanced economy,, Diversification visions and strategies exist. However there were and The, by developing an index with no qualitative/perceptions indicators. The total International EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and possibly score a higher score on the EDI.

For non-diversified nations, when cost of the product falls, there is a substantial decrease in government profits, public costs, present account balance and international reserves: more volatility. The (consisting of major commodity exporters, not restricted to just oil) over the, throughout 25 indicators (including 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific countries top EDI scores throughout the years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversification efforts undertaken by the GCC impacted MENA's regional ratings favorably, it still lags five other local groups., with the leading 10 nations having less than a 10-point distinction in ratings (indicating the strength of diversification)., alongside 4 upper-middle income (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 stick out (when comparing 2024 vs 2000). years, provided accelerated diversity strategies of lots of oil-exporting countries. published a constant enhancement due to a mix of reduced dependence on fuel exports, lowered exports concentration and a modification in the structure of exports.

Will Gulf Non-Oil Growth Outpace Western Benchmarks?

with oil exporters having the most affordable ratings (though specific country-specific performance 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 median score is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was amongst the top ranked, while Mongolia's rating intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an enhancement amongst the top nations. 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 variance 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 overall, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the total). 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+

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

shows a considerable 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 recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & high-tech production information).

Top Global Investment Trends across the Middle East Economy

Its diversification metrics have stagnated, revealing the least enhancement in between the preliminary (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 project pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mainly reflecting non-hydrocarbon tax base expansions and earnings collection effectiveness improvements", according to the IMF. In the present 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 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 five 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 increased 17 ranks during the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

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reveals a significant boost in average 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 agreements & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & high-tech production data).

Its diversification metrics have actually stagnated, revealing the least enhancement between the preliminary (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 demand (supported by a strong project pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mostly showing non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the current geopolitical environment identified by intensifying, it is in the finest interests of product reliant nations to diversify its export base, exports and trade partners.