Key Factors Influencing GCC Market Forecasts by 2026 thumbnail

Key Factors Influencing GCC Market Forecasts by 2026

Published en
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, details the appealing opportunities of buying GCC Facilities, driven by the area's growth and federal government efforts.

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

Why 2026 Is a Landmark Year for Regional Wealth Management

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

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


Despite the fact that structural reforms and diversification efforts undertaken by the GCC impacted MENA's local scores favorably, it still lags five other local groups., with the leading 10 countries having less than a 10-point distinction in ratings (implying the strength of diversity)., alongside 4 upper-middle income (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 stick out (when comparing 2024 vs 2000). years, given accelerated diversification strategies of many oil-exporting nations. published a stable improvement due to a mix of decreased dependence on fuel exports, lowered exports concentration and a modification in the composition of exports.

Can GCC Industrial Success Outpace Western Averages?

with oil exporters having the lowest scores (though specific country-specific performance has actually 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. Throughout all areas, the typical rating is the for both 2000 and 2024, and the highest in North America.

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

Sub-Saharan African nations represent around one-third of the total, followed by Latin America and the Middle East (the latter two 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 five 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 rose 17 ranks throughout the duration. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

shows a substantial boost in typical 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 outperforming in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & high-tech manufacturing data).

Evaluating Regional Investment Incentives vs Global Markets

Its diversity metrics have actually stagnated, showing the least enhancement in between the preliminary (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 an increase in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base growths and income collection performance improvements", according to the IMF. In the current geopolitical environment identified by intensifying, it is 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 overall, followed by Latin America and the Middle East (the latter two 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 5 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 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 transformation has stalled.

Upcoming Middle East Investment Shifts for 2026 World Markets

shows a considerable boost in average 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 exceeding 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 manufacturing data).

Its diversification metrics have stagnated, showing the least enhancement between the preliminary (2000-04) and final (2020-24) recommendation periods., in spite 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 execution) and strong services sector performance.

International Firms: Here Is Your 2026 GCC Entry Guide

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base growths and earnings collection effectiveness improvements", according to the IMF. In the existing geopolitical environment defined by intensifying, it is in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.