Can GCC Non-Oil Growth Exceed Global Averages?

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the attractive chances of purchasing GCC Infrastructure, driven by the region's growth and government initiatives.

Diversification is attain a well balanced economy,, Diversification visions and strategies exist. But there were and The, by developing an index with no qualitative/perceptions indicators. The total Global EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and possibly score a higher score on the EDI.

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

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional scores positively, it still lags five other regional groups., with the leading 10 nations having less than a 10-point distinction in scores (indicating the strength of diversity)., together with 4 upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income nation (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 stand out (when comparing 2024 vs 2000). years, offered sped up diversification strategies of lots of oil-exporting nations. posted a stable improvement due to a combination of reduced dependence on fuel exports, minimized exports concentration and a modification in the composition of exports.

Benefits of Scaling Manufacturing Projects across Middle East

with oil exporters having the lowest ratings (though private country-specific efficiency has differed 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 regions, the average score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement amongst the leading countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (with variation most likely driven by the dichotomy within the region in between the resource-heavy states (e.g.

Sub-Saharan African nations account for around one-third of the total, 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 5 years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+

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

shows a substantial increase in typical EDI ratings 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech production data).

Is the Middle East Becoming Primary Investment Hub?

Its diversity metrics have actually stagnated, showing the least enhancement between the preliminary (2000-04) and final (2020-24) referral 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 application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base expansions and income collection efficiency improvements", according to the IMF. In the present geopolitical environment identified by heightening, it is in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together representing over 40% of the total). Including, 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 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks throughout the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

Why the GCC Becoming Global Investment Hub?

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 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 (partially provided the surge in medium & modern manufacturing data).

Its diversification metrics have actually 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base expansions and revenue collection effectiveness improvements", according to the IMF. In the present geopolitical environment identified by intensifying, it remains in the finest interests of product reliant nations to diversify its export base, exports and trade partners.