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Benefits of Expanding Manufacturing Ventures in Middle East

Published Aug 16, 26
5 min read


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

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

Accelerating Industrial Success via Global Diversification

For non-diversified nations, when rate of the product falls, there is a substantial decrease in federal government earnings, public spending, existing account balance and international reserves: more volatility. The (consisting of major commodity exporters, not limited to simply oil) over the, across 25 indicators (including three digital signs). North America, Western Europe and East Asia Pacific countries leading EDI ratings for many years.

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


Despite the fact that structural reforms and diversity efforts carried out by the GCC impacted MENA's regional scores positively, it still lags five other regional groups., with the top 10 countries having less than a 10-point difference in scores (suggesting the strength of diversity)., together with four upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided accelerated diversity plans of numerous oil-exporting nations. published a stable improvement due to a combination of reduced reliance on fuel exports, reduced exports concentration and a change in the structure of exports.

Optimizing Investment Strategies for the 2026 Gulf Outlook

with oil exporters having the most affordable scores (though specific country-specific efficiency has actually 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 mean rating 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 rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement among 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 region in between the resource-heavy states (e.g.

Sub-Saharan African countries 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 five 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks throughout 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 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & state-of-the-art production data).

Key Factors Influencing Gulf Market Outlooks for 2026

Its diversification metrics have stagnated, revealing the least enhancement in between the initial (2000-04) and last (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion 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 an increase in non-hydrocarbon revenue, "mostly showing non-hydrocarbon tax base growths and profits collection efficiency enhancements", according to the IMF. In the current geopolitical environment identified by heightening, it is in the best interests of product reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for 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 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 up 24; both Saudi Arabia and Oman increased 17 ranks throughout 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.

Is GCC Emerging as Primary Investment Hub?

reveals a considerable increase in typical EDI ratings 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 agreements & non-oil exports push). vs its pre-pandemic reading (partially offered the rise in medium & high-tech production data).

Its diversity metrics have actually stagnated, revealing the least enhancement in between the preliminary (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 demand (supported by a strong job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "primarily reflecting non-hydrocarbon tax base growths and profits collection efficiency improvements", according to the IMF. In the existing geopolitical environment identified by heightening, it is in the very best interests of commodity reliant nations to diversify its export base, exports and trade partners.

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