Why Economic Expansion Boosts GCC Growth in 2026

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

Diversification is accomplish a balanced economy,, Diversity visions and techniques exist. The overall Global EDI is composed of tracking.

For non-diversified nations, when price of the product falls, there is a substantial decrease in federal government earnings, public costs, present account balance and international reserves: more volatility. The (consisting of significant commodity exporters, not limited to simply oil) over the, throughout 25 indicators (consisting of three digital indications). North America, Western Europe and East Asia Pacific countries leading EDI scores over the years.

ANSR July GCC PRs 50DR+

Despite the fact that structural reforms and diversity efforts undertaken by the GCC affected MENA's regional scores positively, it still lags five other regional groups., with the top 10 countries having less than a 10-point distinction in ratings (implying the strength of diversity)., along with 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 efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, offered sped up diversification strategies of lots of oil-exporting countries. published a constant improvement due to a mix of minimized dependence on fuel exports, reduced exports concentration and a change in the structure of exports.

Will Gulf Industrial Success Exceed Western Averages?

with oil exporters having the most affordable ratings (though individual country-specific performance has actually differed with 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 regions, the median score 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 got worse compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among the leading countries. 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 most 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 2 together accounting for over 40% of the total). Consisting of, 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+

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 increased 17 ranks throughout the duration. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

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

Can Gulf Industrial Growth Outpace Western Benchmarks?

Its diversity metrics have actually stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) reference 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 execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base growths and revenue collection efficiency enhancements", according to the IMF. In the present geopolitical environment characterized by heightening, it remains in the finest interests of product dependent countries to diversify its export base, exports and trade partners.

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). 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 ).

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 nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Upcoming GCC Market Trends for 2026 World Markets

shows a significant 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 current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & high-tech production information).

Its diversity metrics have stagnated, showing the least enhancement between the initial (2000-04) and final (2020-24) reference periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth 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 income, "mostly reflecting non-hydrocarbon tax base expansions and profits collection performance improvements", according to the IMF. In the existing geopolitical environment defined by heightening, it remains in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.