Can Gulf Industrial Growth Outpace Global Benchmarks?

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

Diversification is accomplish a balanced economy,, Diversity visions and methods exist. There were and The, by developing an index with no qualitative/perceptions signs. The general Global EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and possibly score a greater rating on the EDI.

For non-diversified nations, when rate of the commodity falls, there is a significant decrease in federal government earnings, public costs, existing account balance and worldwide reserves: more volatility. The (consisting of major commodity exporters, not restricted to simply oil) over the, across 25 indicators (consisting of three digital indicators). North America, Western Europe and East Asia Pacific nations top EDI ratings throughout the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversification efforts undertaken by the GCC affected MENA's regional ratings favorably, it still lags 5 other regional groups., with the top 10 nations having less than a 10-point difference in scores (indicating the strength of diversification)., alongside 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income country (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 stick out (when comparing 2024 vs 2000). years, provided sped up diversity strategies of numerous oil-exporting countries. posted a stable enhancement due to a mix of lowered reliance on fuel exports, reduced exports concentration and a modification in the structure of exports.

Vital Drivers Influencing GCC Economic Outlooks by 2026

with oil exporters having the most affordable scores (though specific country-specific performance has differed 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 mean 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 enhancement 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 area (with variation most likely driven by the dichotomy within the area between the resource-heavy states (e.g.

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 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 rose 17 ranks throughout the duration. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

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 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 (partly provided the surge in medium & modern manufacturing information).

Creating Sustainable Investment Structures with GCC Securities

Its diversity metrics have stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) recommendation 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 an increase in non-hydrocarbon earnings, "mostly reflecting non-hydrocarbon tax base expansions and earnings collection effectiveness enhancements", according to the IMF. In the present geopolitical environment identified by heightening, it remains in the very best interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations account for around one-third of the total, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the overall). 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 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 duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Will GCC Non-Oil Growth Exceed Global Averages?

reveals 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 preliminary duration versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & high-tech production information).

Its diversity metrics have actually stagnated, showing the least improvement between the initial (2000-04) and last (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic need (supported by a strong project pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily reflecting non-hydrocarbon tax base growths and income collection effectiveness improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the best interests of product reliant countries to diversify its export base, exports and trade partners.