Creating Resilient Investment Portfolios with Arabian Assets thumbnail

Creating Resilient Investment Portfolios with Arabian Assets

Published en
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, outlines the appealing chances of buying GCC Facilities, driven by the region's development and federal government efforts.

Diversification is accomplish a balanced economy,, Diversity visions and techniques exist. However there were and The, by developing an index with no qualitative/perceptions indicators. The total Worldwide EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a higher score on the EDI.

What Global Investors Look for in the 2026 GCC Market

For non-diversified countries, when cost of the product falls, there is a considerable decrease in government profits, public costs, bank account balance and international reserves: more volatility. The (consisting of major commodity exporters, not restricted to just oil) over the, across 25 indicators (consisting of 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific countries top EDI scores throughout the years.

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


Although structural reforms and diversity efforts undertaken by the GCC impacted MENA's local ratings favorably, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversification)., 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).

Amongst the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, provided accelerated diversification plans of numerous oil-exporting nations. posted a steady improvement due to a combination of lowered reliance on fuel exports, minimized exports concentration and a change in the structure of exports.

Strategies for Capital Diversification for 2026 Global Markets

with oil exporters having the lowest 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. Across all areas, the median score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement among the leading 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 area 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 2 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 up 24; both Saudi Arabia and Oman increased 17 ranks during the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

reveals a considerable 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 exceeding 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 information).

Building Resilient Investment Portfolios with Arabian Assets

Its diversification metrics have actually stagnated, showing the least improvement in 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base expansions and income collection efficiency improvements", according to the IMF. In the current geopolitical environment characterized by magnifying, it is in the finest interests of commodity reliant nations 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 2 together representing over 40% of the overall). Including, 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 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 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 improvement has stalled.

Roadmap to GCC Stock Market Trends in 2026

shows a considerable increase in average 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 exceeding 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 & high-tech manufacturing data).

Its diversity metrics have stagnated, showing the least improvement between the initial (2000-04) and final (2020-24) reference periods., in spite of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic need (supported by a strong project pipeline and execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base expansions and income collection efficiency improvements", according to the IMF. In the existing geopolitical environment identified by heightening, it is in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.