Advantages of Expanding Industrial Ventures in the Middle East thumbnail

Advantages of Expanding Industrial Ventures in the Middle East

Published Aug 25, 26
5 min read


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

Diversity is accomplish a well balanced economy,, Diversity visions and methods exist. The overall Global EDI is composed of tracking.

For non-diversified countries, when rate of the commodity falls, there is a significant decrease in federal government earnings, public costs, bank account balance and worldwide reserves: more volatility. The (including significant commodity exporters, not restricted to simply oil) over the, across 25 signs (consisting of 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific nations leading EDI scores over the years.

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


Despite the fact that structural reforms and diversification efforts carried out by the GCC impacted MENA's regional scores positively, it still lags 5 other regional groups., with the leading 10 nations having less than a 10-point distinction in ratings (suggesting the strength of diversification)., alongside 4 upper-middle earnings (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, provided sped up diversity plans of lots of oil-exporting nations. posted a consistent improvement due to a combination of minimized reliance on fuel exports, lowered exports concentration and a change in the structure of exports.

The Role of FDI on GCC Industrial Transformation

with oil exporters having the lowest ratings (though private country-specific performance 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 regions, the typical rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's rating got worse compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement amongst 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 region (with variation likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

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

shows a substantial 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 duration 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 offered the rise in medium & high-tech production data).

Roadmap to Gulf Stock Market Trends in 2026

Its diversification metrics have stagnated, showing the least enhancement between the preliminary (2000-04) and last (2020-24) recommendation 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 execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly reflecting non-hydrocarbon tax base expansions and revenue collection efficiency improvements", according to the IMF. In the present geopolitical environment identified by magnifying, it remains in the best interests of product reliant nations 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 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 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 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Why Industrial Diversification Drives Middle East Stability in 2026

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 initial duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & high-tech manufacturing data).

Its diversification metrics have actually stagnated, showing the least enhancement in between the preliminary (2000-04) and final (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 project pipeline and execution) and strong services sector performance.

Key Drivers Shaping Gulf Market Outlooks for 2026

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base expansions and revenue collection performance improvements", according to the IMF. In the current geopolitical environment identified by heightening, it remains in the finest interests of commodity dependent countries to diversify its export base, exports and trade partners.

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