Essential Global Investment Trends within the GCC Economy thumbnail

Essential Global Investment Trends within the GCC Economy

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, describes the appealing chances of investing in GCC Infrastructure, driven by the region's growth and federal government efforts.

Diversification is accomplish a balanced economy,, Diversity visions and methods exist. However there were and The, by developing an index with no qualitative/perceptions indicators. The overall Global EDI is composed of tracking. As product exporters diversify, lower their reliance on resource rents and possibly score a higher rating on the EDI.

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For non-diversified nations, when cost of the product falls, there is a substantial decrease in government profits, public costs, current account balance and global reserves: more volatility. The (including significant commodity exporters, not limited to simply oil) over the, throughout 25 indications (including three digital signs). 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+


Even though structural reforms and diversification efforts undertaken by the GCC affected MENA's local ratings positively, it still lags five other regional groups., with the top 10 countries having less than a 10-point difference in ratings (indicating the strength of diversification)., 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).

Amongst the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given accelerated diversification plans of many oil-exporting nations. published a consistent improvement due to a mix of lowered reliance on fuel exports, lowered exports concentration and a change in the composition of exports.

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with oil exporters having the most affordable ratings (though individual country-specific efficiency has 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 areas, the mean rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's rating worsened compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement amongst the top 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 area 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 two together accounting for 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 locations in 2024 compared to 2000 while Qatar climbed up 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 change has stalled.

shows a substantial 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 exceeding 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 & high-tech manufacturing data).

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Its diversification metrics have stagnated, showing the least improvement between the initial (2000-04) and last (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 an increase in non-hydrocarbon income, "mostly showing non-hydrocarbon tax base expansions and revenue collection efficiency enhancements", according to the IMF. In the current geopolitical environment defined by heightening, it is in the very best interests of product dependent 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 2 together accounting for over 40% of the overall). 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 up 24; both Saudi Arabia and Oman increased 17 ranks throughout the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

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shows a significant 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & modern production data).

Its diversification metrics have stagnated, showing the least improvement between the preliminary (2000-04) and last (2020-24) referral 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 project pipeline and execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base growths and revenue collection efficiency enhancements", according to the IMF. In the existing geopolitical environment defined by intensifying, it is in the best interests of commodity dependent nations to diversify its export base, exports and trade partners.

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