How Economic Expansion Drives GCC Growth in 2026 thumbnail

How Economic Expansion Drives GCC Growth in 2026

Published Aug 26, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, lays out the appealing chances of buying GCC Facilities, driven by the area's growth and federal government initiatives.

Diversity is attain a well balanced economy,, Diversity visions and techniques exist. The overall Worldwide EDI is made up of tracking.

Evaluating Market Growth Drivers in GCC Nations

For non-diversified nations, when rate of the product falls, there is a significant decrease in federal government profits, public costs, bank account balance and international reserves: more volatility. The (including major commodity exporters, not restricted to simply oil) over the, throughout 25 indicators (including three digital indicators). North America, Western Europe and East Asia Pacific nations top EDI ratings throughout the years.

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


Even though structural reforms and diversification efforts carried out by the GCC affected MENA's regional scores positively, it still lags 5 other regional groups., with the top 10 nations having less than a 10-point difference in scores (indicating 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 stand apart (when comparing 2024 vs 2000). years, provided accelerated diversity strategies of many oil-exporting countries. published a stable enhancement due to a mix of decreased dependence on fuel exports, minimized exports concentration and a modification in the composition of exports.

Strategies for Capital Allocation for 2026 World Markets

with oil exporters having the most affordable scores (though private country-specific efficiency 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 areas, the average score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the top ranked, while Mongolia's score aggravated compared to 2000)., but 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 between the resource-heavy states (e.g.

Sub-Saharan African countries 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). 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 greater 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 duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

reveals a significant boost 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 (partially provided the rise in medium & high-tech production data).

Creating Sustainable Financial Portfolios with GCC Assets

Its diversity metrics have actually stagnated, revealing the least enhancement between the initial (2000-04) and final (2020-24) recommendation periods., regardless 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 efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "primarily reflecting non-hydrocarbon tax base growths and profits collection efficiency enhancements", according to the IMF. In the existing geopolitical environment defined 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 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 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 greater 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 duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Will Gulf Industrial Growth Outpace Global Averages?

reveals a significant 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 duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & state-of-the-art production data).

Its diversity metrics have stagnated, revealing the least enhancement in between the preliminary (2000-04) and last (2020-24) referral 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 job pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "mostly showing non-hydrocarbon tax base expansions and earnings collection efficiency enhancements", according to the IMF. In the existing geopolitical environment characterized by heightening, it remains in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

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