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Is Middle East Becoming Global Industrial Powerhouse?

Published Aug 16, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, details the appealing chances of purchasing GCC Facilities, driven by the area's development and government initiatives.

Diversification is accomplish a well balanced economy,, Diversity visions and methods exist. The general Global EDI is made up of tracking.

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

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


Despite the fact that structural reforms and diversity efforts undertaken by the GCC affected MENA's regional ratings positively, it still lags five other local groups., with the top 10 nations having less than a 10-point difference in ratings (implying the strength of diversity)., together with four 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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, provided accelerated diversification plans of lots of oil-exporting countries. posted a stable improvement due to a mix of reduced reliance on fuel exports, lowered exports concentration and a modification in the structure of exports.

Strategies for Capital Diversification in 2026 World Markets

with oil exporters having the least expensive ratings (though specific country-specific efficiency has actually 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 mean score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's rating aggravated compared to 2000)., however 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 area (with difference likely driven by the dichotomy within the area in 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 2 together representing over 40% of the overall). Including, there has 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 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 transformation has actually stalled.

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 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 offered the rise in medium & state-of-the-art manufacturing information).

Creating Sustainable Investment Structures with GCC Assets

Its diversity metrics have actually stagnated, showing the least improvement between the preliminary (2000-04) and final (2020-24) recommendation periods., in spite 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 execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base expansions and income collection efficiency enhancements", according to the IMF. In the present geopolitical environment defined by intensifying, it is in the best interests of product reliant 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 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 higher than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

Can GCC Non-Oil Success Outpace Global Averages?

reveals a considerable increase 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 exceeding 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 & state-of-the-art manufacturing data).

Its diversity metrics have stagnated, revealing the least improvement in between the initial (2000-04) and last (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.

Roadmap to Gulf Stock Market Trends for 2026

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and revenue collection efficiency improvements", according to the IMF. In the existing geopolitical environment characterized by heightening, it remains in the very best interests of commodity dependent nations to diversify its export base, exports and trade partners.

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