Why Economic Diversification Drives Middle East Stability in 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, outlines the attractive opportunities of buying GCC Infrastructure, driven by the region's growth and government efforts.

Diversification is attain a well balanced economy,, Diversity visions and methods exist. There were and The, by creating an index with no qualitative/perceptions indicators. The overall International EDI is made up of tracking. As product exporters diversify, lower their reliance on resource leas and possibly score a higher rating on the EDI.

For non-diversified countries, when cost of the product falls, there is a considerable decline in government income, public spending, existing account balance and global reserves: more volatility. The (including significant product exporters, not restricted to just oil) over the, throughout 25 signs (including 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings over the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts carried out by the GCC impacted MENA's regional ratings favorably, it still lags five other local groups., with the top 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversification)., together with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Among the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided accelerated diversity plans of many oil-exporting countries. published a consistent enhancement due to a combination of minimized dependence on fuel exports, minimized exports concentration and a change in the composition of exports.

Essential Global Investment Opportunities across the GCC Economy

with oil exporters having the most affordable scores (though individual country-specific performance has actually varied 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 rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was amongst the top ranked, while Mongolia's rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement amongst the top nations. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA region (with variation most 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 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+

and ranked higher than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals 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 exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially offered the rise in medium & high-tech manufacturing data).

Comparing GCC Investment Incentives vs Global Markets

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily reflecting non-hydrocarbon tax base growths and profits collection performance enhancements", according to the IMF. In the existing geopolitical environment characterized by magnifying, it is in the best interests of product 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 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 five years pre- and post-pandemic ).

and ranked greater than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks throughout the duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Navigating GCC Equity Exchange Trends for 2026

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

Its diversity metrics have stagnated, revealing the least improvement between the preliminary (2000-04) and final (2020-24) reference 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 implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "primarily showing non-hydrocarbon tax base expansions and income collection efficiency improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it is in the finest interests of product dependent countries to diversify its export base, exports and trade partners.