How Industrial Diversification Drives Middle East Stability for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, describes the appealing opportunities of investing in GCC Facilities, driven by the region's development and government efforts.

Diversification is accomplish a well balanced economy,, Diversification visions and strategies exist. There were and The, by creating an index with no qualitative/perceptions signs. The overall International EDI is composed of tracking. As product exporters diversify, lower their dependence on resource rents and potentially score a greater rating on the EDI.

For non-diversified countries, when cost of the product falls, there is a considerable decrease in government profits, public costs, existing account balance and international reserves: more volatility. The (including significant product exporters, not restricted to simply oil) over the, throughout 25 indicators (consisting of 3 digital indicators). North America, Western Europe and East Asia Pacific countries top EDI scores over the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversification efforts undertaken by the GCC affected MENA's regional scores positively, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point difference in ratings (indicating the strength of diversification)., along with 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given accelerated diversification strategies of lots of oil-exporting nations. posted a steady enhancement due to a combination of reduced reliance on fuel exports, decreased exports concentration and a change in the composition of exports.

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with oil exporters having the lowest ratings (though specific 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. Throughout all areas, the average rating is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the top ranked, while Mongolia's score aggravated compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement 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 region (with variance most likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries account for around one-third of the total, followed by Latin America and the Middle East (the latter two together representing over 40% of the total). Including, there has 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+

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 throughout the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

shows a substantial 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 outperforming in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & modern production information).

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Its diversification metrics have stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) referral periods., in spite of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic demand (supported by a strong task pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base expansions and profits collection efficiency improvements", according to the IMF. In the present geopolitical environment identified by intensifying, it remains in the finest interests of product dependent nations to diversify its export base, exports and trade partners.

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). 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

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shows a significant increase in average 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 surpassing 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 & modern manufacturing information).

Its diversity metrics have actually stagnated, revealing the least improvement between the preliminary (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 project pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base expansions and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment characterized by intensifying, it is in the finest interests of product reliant nations to diversify its export base, exports and trade partners.