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Why GCC Becoming Global Investment Powerhouse?

Published Aug 23, 26
5 min read


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

Diversity is achieve a well balanced economy,, Diversification visions and strategies exist. There were and The, by developing an index with no qualitative/perceptions indications. The total Global EDI is composed of tracking. As commodity exporters diversify, lower their reliance on resource leas and potentially score a greater score on the EDI.

Vital Stock Market Trends Across the Middle East

For non-diversified countries, when price of the product falls, there is a substantial decline in government revenue, public costs, bank account balance and international reserves: more volatility. The (including major product exporters, not restricted to simply oil) over the, throughout 25 indicators (including 3 digital indicators). North America, Western Europe and East Asia Pacific nations top EDI scores throughout the years.

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


Despite the fact that structural reforms and diversity efforts carried out by the GCC impacted MENA's regional ratings favorably, it still lags 5 other regional groups., with the leading 10 countries having less than a 10-point distinction in scores (implying the strength of diversification)., alongside four 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 efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity plans of numerous oil-exporting nations. posted a constant enhancement due to a mix of reduced dependence on fuel exports, reduced exports concentration and a modification in the composition of exports.

Role of Capital on Regional Industrial Development

with oil exporters having the most affordable scores (though specific country-specific performance has actually differed 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. 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 among the top ranked, while Mongolia's rating aggravated compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement amongst the top countries. 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 variance likely driven by the dichotomy within the region 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 representing over 40% of the overall). Consisting of, 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 ).

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

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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech production data).

Upcoming GCC Market Trends for 2026 Global Markets

Its diversification metrics have stagnated, showing the least enhancement between the preliminary (2000-04) and last (2020-24) recommendation 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 job pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly reflecting non-hydrocarbon tax base expansions and profits collection effectiveness improvements", according to the IMF. In the existing geopolitical environment defined by heightening, it remains in the very best interests of commodity 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 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 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 throughout the duration. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Why GCC Becoming Global Industrial Powerhouse?

shows 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 period versus 2020-24). with UAE outshining 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 & modern production data).

Its diversification metrics have stagnated, revealing the least improvement between the preliminary (2000-04) and last (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 task pipeline and application) and strong services sector efficiency.

The Role of FDI on GCC Economic Transformation

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily reflecting non-hydrocarbon tax base expansions and earnings collection effectiveness enhancements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

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