Frameworks for Asset Allocation for 2026 Global Markets thumbnail

Frameworks for Asset Allocation for 2026 Global Markets

Published Aug 17, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, details the appealing opportunities of investing in GCC Infrastructure, driven by the region's development and federal government initiatives.

Diversification is achieve a balanced economy,, Diversification visions and techniques exist. There were and The, by developing an index with no qualitative/perceptions indications. The general Global EDI is composed of tracking. As commodity exporters diversify, lower their dependence on resource rents and possibly score a higher rating on the EDI.

Upcoming Middle East Investment Trends for 2026 Global Markets

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

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


Even though structural reforms and diversification efforts carried out by the GCC impacted MENA's local ratings positively, it still lags 5 other regional groups., with the top 10 nations having less than a 10-point distinction in scores (suggesting the strength of diversification)., along with 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. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given sped up diversification plans of numerous oil-exporting countries. posted a steady enhancement due to a combination of minimized dependence on fuel exports, minimized exports concentration and a modification in the structure of exports.

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with oil exporters having the lowest ratings (though private country-specific efficiency has varied 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. Throughout all regions, the median score is the for both 2000 and 2024, and the highest in The United States and Canada.

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 amongst the top nations. By comparing the (height of the blue box), least variability is seen in South Asia in 2000 and the most in the MENA area (with variance likely driven by the dichotomy within the area in 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 accounting for over 40% of the total). 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 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 duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

reveals a considerable increase 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & modern production information).

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Its diversity metrics have actually stagnated, showing the least improvement between the initial (2000-04) and final (2020-24) referral 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 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 earnings collection effectiveness improvements", according to the IMF. In the current geopolitical environment defined by magnifying, it is in the best interests of commodity reliant nations 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 representing 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 higher than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Top Global Investment Opportunities across Middle East Market

shows a substantial 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 surpassing in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & high-tech production information).

Its diversification metrics have actually stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) referral periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic demand (supported by a strong task pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and income collection effectiveness enhancements", according to the IMF. In the current geopolitical environment characterized by magnifying, it is in the finest interests of commodity dependent nations to diversify its export base, exports and trade partners.

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