Key Drivers Influencing GCC Economic Outlooks for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the appealing opportunities of purchasing GCC Infrastructure, driven by the region's development and government efforts.

Diversification is achieve a well balanced economy,, Diversification visions and strategies exist. There were and The, by developing an index with no qualitative/perceptions signs. The general International EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource rents and potentially score a greater rating on the EDI.

For non-diversified nations, when cost of the commodity falls, there is a significant decline in government income, public costs, present account balance and global reserves: more volatility. The (consisting of 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 leading EDI ratings over the years.

ANSR July GCC PRs 50DR+

Even though structural reforms and diversity efforts carried out by the GCC impacted MENA's regional scores favorably, it still lags 5 other regional groups., with the leading 10 nations having less than a 10-point difference in scores (suggesting the strength of diversification)., alongside 4 upper-middle earnings (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 stick out (when comparing 2024 vs 2000). years, provided sped up diversification strategies of numerous oil-exporting countries. posted a consistent enhancement due to a combination of reduced reliance on fuel exports, lowered exports concentration and a modification in the composition of exports.

Upcoming Middle East Market Shifts for 2026 World Markets

with oil exporters having the most affordable scores (though individual country-specific efficiency has 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 areas, the mean rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's score got worse compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement 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 region (with variance likely driven by the dichotomy within the region 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 representing 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 ).

ANSR July GCC PRs 50DR+

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 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 improvement has actually stalled.

shows a considerable increase 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 outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech manufacturing data).

The Impact of FDI on GCC Economic Transformation

Its diversity metrics have actually stagnated, showing the least improvement between the preliminary (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 task pipeline and execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base expansions and income collection efficiency enhancements", according to the IMF. In the current geopolitical environment characterized by magnifying, it is in the finest interests of product dependent 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 5 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 during the period. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

Will Gulf Non-Oil Success Outpace Western Averages?

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 surpassing 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 & modern manufacturing data).

Its diversity metrics have actually stagnated, showing the least improvement between the initial (2000-04) and last (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 need (supported by a strong task pipeline and implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the present geopolitical environment identified by heightening, it is in the very best interests of product reliant nations to diversify its export base, exports and trade partners.