Will GCC Non-Oil Growth Outpace Western Benchmarks? thumbnail

Will GCC Non-Oil Growth Outpace Western Benchmarks?

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, details the attractive chances of investing in GCC Facilities, driven by the area's development and federal government efforts.

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. However there were and The, by developing an index with no qualitative/perceptions signs. The overall Global EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource leas and potentially score a greater score on the EDI.

For non-diversified countries, when cost of the commodity falls, there is a substantial decline in government earnings, public costs, bank 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 diversity efforts carried out by the GCC impacted MENA's regional ratings favorably, it still lags five other regional groups., with the top 10 nations having less than a 10-point distinction in scores (implying the strength of diversity)., alongside 4 upper-middle earnings (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 stand apart (when comparing 2024 vs 2000). years, provided sped up diversification strategies of lots of oil-exporting countries. posted a constant enhancement due to a combination of minimized dependence on fuel exports, decreased exports concentration and a change in the composition of exports.

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

In 2024, the (China was among the top ranked, while Mongolia's rating got worse compared to 2000)., but more to do with a "levelling up" at the bottom rather than an improvement amongst the top countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (with variance likely driven by the dichotomy within the area between the resource-heavy states (e.g.

Sub-Saharan African countries account for around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together representing 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 5 years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+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 caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals a considerable increase 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 outperforming in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & state-of-the-art production information).

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Its diversity metrics have stagnated, showing the least enhancement in between the initial (2000-04) and final (2020-24) recommendation periods., despite 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 profits, "mainly showing non-hydrocarbon tax base expansions and profits collection efficiency improvements", according to the IMF. In the current geopolitical environment defined 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 two together accounting for 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 five 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 up 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

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reveals a substantial increase in typical EDI ratings from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the initial duration versus 2020-24). with UAE outperforming in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & state-of-the-art production information).

Its diversification metrics have stagnated, revealing the least enhancement in between the initial (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 demand (supported by a strong task pipeline and execution) 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 revenue collection efficiency improvements", according to the IMF. In the current geopolitical environment identified by magnifying, it remains in the finest interests of product reliant countries to diversify its export base, exports and trade partners.

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