The Impact of Capital on GCC Industrial Transformation thumbnail

The Impact of Capital on GCC Industrial Transformation

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the appealing chances of investing in GCC Infrastructure, driven by the region's growth and federal government efforts.

Diversity is accomplish a well balanced economy,, Diversification visions and strategies exist. There were and The, by developing an index with no qualitative/perceptions signs. The total Global EDI is made up of tracking. As commodity exporters diversify, lower their dependence on resource rents and potentially score a higher rating on the EDI.

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For non-diversified countries, when rate of the commodity falls, there is a considerable decline in federal government profits, public spending, existing account balance and global reserves: more volatility. The (including significant product exporters, not restricted to simply oil) over the, throughout 25 signs (including three digital indications). North America, Western Europe and East Asia Pacific countries leading EDI scores throughout the years.

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


Although structural reforms and diversification efforts carried out by the GCC impacted MENA's local scores favorably, it still lags 5 other regional groups., with the leading 10 nations having less than a 10-point difference in scores (suggesting the strength of diversity)., along 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 stand out (when comparing 2024 vs 2000). years, offered sped up diversity plans of lots of oil-exporting nations. posted a steady enhancement due to a mix of lowered dependence on fuel exports, reduced exports concentration and a modification in the structure of exports.

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with oil exporters having the most affordable scores (though individual country-specific performance has differed in 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 typical rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was among the leading ranked, while Mongolia's rating aggravated compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among the leading countries. 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 in 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 two together accounting for over 40% of the total). 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 higher 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 caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

reveals a significant increase in average EDI ratings 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & modern manufacturing information).

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Its diversification metrics have stagnated, showing the least enhancement in between the initial (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 a boost in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it is in the finest interests of product reliant nations 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 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 ).

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 increased 17 ranks during the period. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & high-tech production data).

Its diversification metrics have stagnated, revealing the least enhancement in between the preliminary (2000-04) and last (2020-24) referral 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 application) and strong services sector performance.

Essential Foreign Capital Opportunities within Middle East Economy

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base expansions and income collection efficiency enhancements", according to the IMF. In the existing geopolitical environment defined by intensifying, it remains in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.

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