Why Economic Diversification Drives GCC Growth in 2026

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

Diversity is achieve a well balanced economy,, Diversification visions and techniques exist. There were and The, by creating an index with no qualitative/perceptions signs. The total Global EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource rents and possibly score a greater rating on the EDI.

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

ANSR July GCC PRs 50DR+

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

Among the e. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given accelerated diversity strategies of many oil-exporting nations. published a steady enhancement due to a combination of decreased reliance on fuel exports, minimized exports concentration and a modification in the composition of exports.

Optimizing Capital Strategies for the 2026 Gulf Economy

with oil exporters having the most affordable scores (though specific country-specific performance has varied 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. Across all regions, the average rating is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was among the leading 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 countries. 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 variation most likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African countries 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). 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 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 during the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

reveals a significant 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 period versus 2020-24). with UAE outshining in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & state-of-the-art production information).

Evaluating Regional Capital Climates vs Emerging Markets

Its diversity metrics have actually stagnated, showing the least improvement between the preliminary (2000-04) and last (2020-24) referral 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 job pipeline and implementation) and strong services sector performance.

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

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 total). Consisting of, 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 ).

and ranked higher than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 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 transformation has stalled.

Top Global Investment Opportunities across GCC Economy

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 preliminary duration versus 2020-24). with UAE outshining in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the rise in medium & high-tech manufacturing data).

Its diversity metrics have actually stagnated, showing the least enhancement in between the initial (2000-04) and last (2020-24) recommendation 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 job pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily reflecting non-hydrocarbon tax base expansions and earnings collection performance improvements", according to the IMF. In the existing geopolitical environment characterized by heightening, it remains in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.