Guide to Gulf Stock Market Success in 2026 thumbnail

Guide to Gulf Stock Market Success in 2026

Published Aug 15, 26
5 min read


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

Diversification is accomplish a well balanced economy,, Diversity visions and methods exist. However there were and The, by developing an index with no qualitative/perceptions signs. The total Global EDI is made up of tracking. As commodity exporters diversify, lower their dependence on resource leas and possibly score a greater score on the EDI.

Comparing Market Growth Drivers in GCC Economies

For non-diversified nations, when rate of the commodity falls, there is a considerable decrease in government profits, public spending, present account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not restricted to simply oil) over the, throughout 25 indications (including 3 digital indications). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings for many 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 5 other local groups., with the leading 10 nations having less than a 10-point distinction in scores (suggesting the strength of diversification)., alongside 4 upper-middle income (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 apart (when comparing 2024 vs 2000). years, offered sped up diversification strategies of many oil-exporting nations. published a stable improvement due to a mix of lowered reliance on fuel exports, decreased exports concentration and a modification in the composition of exports.

Refining Capital Strategies for the Next-Gen Gulf Outlook

with oil exporters having the most affordable scores (though specific country-specific efficiency has actually 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 regions, the typical rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among the top countries. 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 variance likely driven by the dichotomy within the area 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 two 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+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 rose 17 ranks throughout the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals a substantial boost in average 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 outperforming in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially offered the rise in medium & high-tech manufacturing information).

Why Economic Diversification Drives Middle East Stability in 2026

Its diversity metrics have stagnated, revealing the least enhancement between the initial (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 job pipeline and implementation) and strong services sector efficiency.

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

Sub-Saharan African nations 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 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 ).

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

Comparing Regional Capital Incentives vs Emerging Markets

reveals a significant increase in average 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 exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially provided the rise in medium & state-of-the-art manufacturing information).

Its diversity metrics have stagnated, revealing the least improvement in between the initial (2000-04) and final (2020-24) referral 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, "primarily reflecting non-hydrocarbon tax base growths and earnings collection efficiency enhancements", according to the IMF. In the current geopolitical environment defined by heightening, it remains in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.

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