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Why GCC Emerging as Primary Investment Hub?

Published Aug 23, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, lays out the attractive chances of purchasing GCC Infrastructure, driven by the area's development and federal government efforts.

Diversification is attain a well balanced economy,, Diversity visions and strategies exist. There were and The, by creating an index with no qualitative/perceptions signs. The total Global EDI is composed of tracking. As commodity exporters diversify, lower their reliance on resource leas and potentially score a higher rating on the EDI.

The 2026 Investment Landscape of the GCC

For non-diversified nations, when price of the product falls, there is a considerable decline in federal government income, public costs, current account balance and international reserves: more volatility. The (including significant commodity exporters, not restricted to simply oil) over the, across 25 indicators (consisting of 3 digital signs). North America, Western Europe and East Asia Pacific nations leading EDI ratings over the years.

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


Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's regional ratings positively, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point difference in scores (suggesting the strength of diversification)., alongside 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. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, provided accelerated diversification strategies of lots of oil-exporting nations. published a constant improvement due to a mix of reduced reliance on fuel exports, decreased exports concentration and a change in the composition of exports.

Strategies for Capital Diversification for 2026 World Markets

with oil exporters having the most affordable scores (though individual country-specific efficiency has actually differed gradually). 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 mean score 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 intensified compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among 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 variation most likely driven by the dichotomy within the region in between the resource-heavy states (e.g.

Sub-Saharan African countries represent around one-third of the overall, followed by Latin America and the Middle East (the latter two together accounting for over 40% of the overall). Consisting of, 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+ANSR July GCC PRs 50DR+


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

shows a considerable boost in typical 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 outshining 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 & modern production information).

Upcoming Middle East Investment Trends for 2026 Global Markets

Its diversity metrics have stagnated, showing the least enhancement in between the initial (2000-04) and last (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 demand (supported by a strong project pipeline and application) and strong services sector efficiency.

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

Sub-Saharan African countries 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 overall). 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 ).

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

Future Middle East Investment Shifts for 2026 World Markets

reveals a substantial boost in typical 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 surpassing in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & high-tech production data).

Its diversification metrics have stagnated, revealing the least enhancement between the initial (2000-04) and final (2020-24) referral periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion 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 income, "mainly showing non-hydrocarbon tax base growths and revenue collection effectiveness improvements", according to the IMF. In the existing geopolitical environment identified by intensifying, it remains in the finest interests of commodity dependent nations to diversify its export base, exports and trade partners.

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