Key Drivers Influencing Gulf Market Forecasts for 2026

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

Diversity is attain a balanced economy,, Diversity visions and techniques exist. There were and The, by creating an index with no qualitative/perceptions indications. The total International EDI is composed of tracking. As commodity exporters diversify, lower their reliance on resource rents and possibly score a greater rating on the EDI.

For non-diversified countries, when price of the commodity falls, there is a substantial decrease in government profits, public spending, present account balance and worldwide reserves: more volatility. The (consisting of major commodity exporters, not limited to simply oil) over the, across 25 indications (consisting of three digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations top EDI ratings for many years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts carried out by the GCC impacted MENA's regional scores favorably, it still lags 5 other local groups., with the leading 10 nations having less than a 10-point distinction in ratings (indicating the strength of diversification)., along with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Amongst the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, offered accelerated diversification strategies of numerous oil-exporting countries. published a steady enhancement due to a mix of minimized dependence on fuel exports, minimized exports concentration and a modification in the structure of exports.

How Industrial Diversification Drives Middle East Growth in 2026

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

In 2024, the (China was among the top ranked, while Mongolia's score aggravated compared to 2000)., but more to do with a "levelling up" at the bottom rather than an improvement amongst the leading nations. 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 likely driven by the dichotomy within the area in 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 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+

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 rose 17 ranks during the period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals a significant increase in average 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 outperforming in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & modern manufacturing information).

Vital Factors Shaping GCC Economic Forecasts for 2026

Its diversity metrics have stagnated, showing the least enhancement 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 need (supported by a strong job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base expansions and revenue collection efficiency improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent around one-third of the overall, followed by Latin America and the Middle East (the latter 2 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks during the period. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

Analyzing Middle East Stock Market Shifts for 2026

shows a substantial boost in average 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 (partially given the surge in medium & state-of-the-art production data).

Its diversification metrics have stagnated, showing the least improvement between the initial (2000-04) and final (2020-24) referral periods., regardless of 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 application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base expansions and income collection effectiveness enhancements", according to the IMF. In the present geopolitical environment defined by intensifying, it is in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.