Why the GCC Becoming Global Investment Powerhouse? thumbnail

Why the GCC Becoming Global Investment Powerhouse?

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, details the attractive opportunities of investing in GCC Infrastructure, driven by the area's development and government initiatives.

Diversification is attain a balanced economy,, Diversification visions and methods exist. The general International EDI is made up of tracking.

The Geopolitical Power of Trillion-Dollar Regional Wealth Reserves

For non-diversified nations, when rate of the commodity falls, there is a substantial decrease in federal government revenue, public costs, present account balance and global reserves: more volatility. The (consisting of significant product exporters, not restricted to simply oil) over the, throughout 25 indicators (consisting of three digital indicators). North America, Western Europe and East Asia Pacific countries leading EDI scores throughout the years.

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


Even though structural reforms and diversification efforts carried out by the GCC affected MENA's local ratings favorably, it still lags five other local groups., with the top 10 nations having less than a 10-point distinction in scores (suggesting the strength of diversification)., alongside 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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity strategies of numerous oil-exporting nations. posted a steady improvement due to a mix of reduced dependence on fuel exports, reduced exports concentration and a change in the structure of exports.

Strategies for Asset Allocation for 2026 Global Markets

with oil exporters having the least expensive ratings (though specific country-specific performance has differed gradually). 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 typical 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 rating aggravated 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 region (with difference most likely driven by the dichotomy within the region 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 two 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 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 throughout the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals 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 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 surge in medium & state-of-the-art production information).

How Economic Diversification Drives Middle East Growth for 2026

Its diversification metrics have actually stagnated, showing the least improvement in between the preliminary (2000-04) and last (2020-24) referral 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 performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment characterized by intensifying, it is in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries 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 overall). 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 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 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 improvement has actually stalled.

Benefits of Scaling Manufacturing Ventures in the GCC

shows a considerable boost 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 exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & state-of-the-art production data).

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

The Geopolitical Power of Trillion-Dollar Regional Wealth Reserves

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "primarily reflecting non-hydrocarbon tax base expansions and profits collection performance improvements", according to the IMF. In the current geopolitical environment characterized by intensifying, it remains in the very best interests of product reliant nations to diversify its export base, exports and trade partners.

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