Will Gulf Industrial Growth Exceed Global Benchmarks? thumbnail

Will Gulf Industrial Growth Exceed Global Benchmarks?

Published Aug 17, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the attractive opportunities of buying GCC Facilities, driven by the area's growth and federal government initiatives.

Diversity is accomplish a balanced economy,, Diversity visions and techniques exist. The total Worldwide EDI is made up of tracking.

The Rise of Regional Industrial Hubs

For non-diversified countries, when cost of the product falls, there is a substantial decrease in federal government revenue, public costs, bank account balance and worldwide reserves: more volatility. The (including major product exporters, not limited to just oil) over the, across 25 signs (including three digital signs). North America, Western Europe and East Asia Pacific countries top EDI ratings throughout the years.

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


Even though structural reforms and diversification efforts undertaken by the GCC affected MENA's regional ratings favorably, it still lags 5 other local groups., with the leading 10 nations having less than a 10-point distinction in scores (suggesting the strength of diversity)., alongside 4 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. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, given accelerated diversity strategies of numerous oil-exporting nations. posted a stable improvement due to a mix of lowered reliance on fuel exports, reduced exports concentration and a change in the structure of exports.

Guide to GCC Stock Market Trends for 2026

with oil exporters having the most affordable scores (though specific country-specific performance 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 average score is the for both 2000 and 2024, and the greatest 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 rather than an enhancement among the leading nations. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA region (with variation most likely driven by the dichotomy within the region 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 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 ).

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 throughout the period. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

reveals 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 initial 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 surge in medium & high-tech manufacturing data).

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Its diversification metrics have stagnated, revealing the least improvement between the preliminary (2000-04) and final (2020-24) recommendation 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 project pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and profits collection efficiency enhancements", according to the IMF. In the current geopolitical environment identified by magnifying, it remains in the very 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 2 together representing 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 ).

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 throughout the period. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Guide to GCC Financial Equity Trends for 2026

shows 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly given the surge in medium & state-of-the-art production data).

Its diversity metrics have stagnated, revealing the least enhancement in between the preliminary (2000-04) and last (2020-24) reference 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 task pipeline and application) and strong services sector efficiency.

Strategic Industrial Diversification in the Future

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the existing geopolitical environment defined by heightening, it remains in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

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