Evaluating GCC Investment Incentives vs Global Markets

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA company, outlines the appealing opportunities of purchasing GCC Infrastructure, driven by the area's growth and federal government efforts.

Diversification is achieve a well balanced economy,, Diversification visions and methods exist. There were and The, by developing an index with no qualitative/perceptions indications. The overall International EDI is composed of tracking. As commodity exporters diversify, lower their dependence on resource rents and possibly score a greater rating on the EDI.

For non-diversified nations, when rate of the commodity falls, there is a significant decline in federal government income, public spending, current account balance and international reserves: more volatility. The (consisting of major commodity exporters, not limited to simply oil) over the, throughout 25 indications (consisting of 3 digital indicators). North America, Western Europe and East Asia Pacific nations top EDI ratings over the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts carried out by the GCC impacted MENA's local ratings positively, it still lags 5 other local groups., with the leading 10 countries having less than a 10-point difference in ratings (indicating the strength of diversity)., along with four upper-middle income (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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, offered accelerated diversity plans of many oil-exporting nations. published a steady improvement due to a mix of reduced dependence on fuel exports, decreased exports concentration and a change in the composition of exports.

Why Industrial Expansion Drives Middle East Stability in 2026

with oil exporters having the lowest ratings (though specific country-specific performance has differed over 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 typical score is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was amongst the top ranked, while Mongolia's rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement amongst the top countries. 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 between the resource-heavy states (e.g.

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 ).

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

shows a significant boost in average EDI ratings from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the initial period versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & high-tech production information).

Is the Middle East Becoming Primary Investment Hub?

Its diversity metrics have stagnated, revealing the least improvement in between the preliminary (2000-04) and final (2020-24) recommendation periods., regardless 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 execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mostly reflecting non-hydrocarbon tax base expansions and earnings collection efficiency enhancements", according to the IMF. In the present geopolitical environment defined by intensifying, it remains in the very best interests of commodity dependent countries 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). Consisting of, 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 locations in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

Analyzing Middle East Stock Exchange Shifts for 2026

shows a considerable 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 agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the rise in medium & state-of-the-art manufacturing data).

Its diversity metrics have stagnated, revealing the least improvement in between the preliminary (2000-04) and final (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 project pipeline and execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness improvements", according to the IMF. In the current geopolitical environment defined by magnifying, it remains in the very best interests of commodity reliant nations to diversify its export base, exports and trade partners.