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The Role of FDI on Regional Industrial Transformation

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, details the attractive chances of purchasing GCC Facilities, driven by the region's growth and federal government initiatives.

Diversity is attain a balanced economy,, Diversity visions and strategies exist. The total Global EDI is composed of tracking.

For non-diversified nations, when cost of the product falls, there is a considerable decline in federal government income, public costs, bank account balance and worldwide reserves: more volatility. The (including major commodity exporters, not limited to just oil) over the, across 25 indicators (consisting of three digital indications). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI ratings for many years.

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


Despite the fact that structural reforms and diversity efforts undertaken by the GCC affected MENA's local ratings positively, it still lags 5 other local groups., with the leading 10 nations having less than a 10-point distinction in ratings (suggesting the strength of diversification)., together with 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, given accelerated diversification strategies of many oil-exporting nations. posted a stable improvement due to a combination of decreased reliance on fuel exports, decreased exports concentration and a modification in the structure of exports.

The Role of Capital on GCC Industrial Transformation

with oil exporters having the most affordable scores (though individual country-specific efficiency has actually 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 average rating is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's rating worsened compared to 2000)., however 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 difference 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 two together accounting for over 40% of the total). Including, 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks during the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

shows a substantial 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 outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & high-tech manufacturing data).

Can Gulf Non-Oil Success Exceed Western Benchmarks?

Its diversification metrics have stagnated, revealing the least improvement in between the initial (2000-04) and final (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 task pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base growths and earnings collection efficiency enhancements", according to the IMF. In the present geopolitical environment identified by magnifying, it remains in the finest interests of commodity dependent countries 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 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 ).

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 rose 17 ranks during the period. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

How Industrial Diversification Boosts GCC Stability for 2026

reveals a significant 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 outperforming in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech production information).

Its diversification metrics have actually stagnated, showing the least enhancement between the preliminary (2000-04) and last (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 demand (supported by a strong job pipeline and implementation) and strong services sector efficiency.

How Regional Wealth Reserves Mitigate Geopolitical Tensions in 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base growths and revenue collection effectiveness enhancements", according to the IMF. In the present geopolitical environment identified by magnifying, it is in the very best interests of product dependent nations to diversify its export base, exports and trade partners.