Vital Factors Shaping GCC Economic Forecasts by 2026 thumbnail

Vital Factors Shaping GCC Economic Forecasts by 2026

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the attractive opportunities of buying GCC Facilities, driven by the region's development and government efforts.

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

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For non-diversified countries, when price of the product falls, there is a substantial decrease in federal government revenue, public spending, bank account balance and international reserves: more volatility. The (consisting of significant commodity exporters, not limited to just oil) over the, throughout 25 signs (including three digital signs). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores throughout the years.

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


Although structural reforms and diversification efforts carried out by the GCC affected MENA's local scores favorably, it still lags five other local groups., with the leading 10 countries having less than a 10-point difference in scores (suggesting the strength of diversity)., 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).

Amongst the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, offered sped up diversity plans of lots of oil-exporting nations. published a steady improvement due to a mix of lowered reliance on fuel exports, minimized exports concentration and a modification in the structure of exports.

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with oil exporters having the least expensive ratings (though specific country-specific efficiency has varied 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. Across all regions, the typical rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among 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 improvement 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 area 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 overall). 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+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 up 24; both Saudi Arabia and Oman rose 17 ranks during the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

reveals 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 preliminary period versus 2020-24). with UAE outshining in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the rise in medium & modern manufacturing information).

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

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and revenue collection effectiveness enhancements", according to the IMF. In the current geopolitical environment defined by heightening, it is in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter two together accounting for 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 ).

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 caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

Frameworks for Capital Allocation for 2026 Global Markets

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 preliminary duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & high-tech manufacturing information).

Its diversification metrics have actually stagnated, showing the least enhancement in between the preliminary (2000-04) and final (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 task pipeline and execution) and strong services sector performance.

Strategic Economic Shifts for 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base expansions and earnings collection performance enhancements", according to the IMF. In the present geopolitical environment identified by magnifying, it remains in the best interests of commodity reliant countries to diversify its export base, exports and trade partners.