Navigating Middle East Equity Market Shifts through 2026 thumbnail

Navigating Middle East Equity Market Shifts through 2026

Published Aug 23, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, details the appealing chances of purchasing GCC Facilities, driven by the region's development and government initiatives.

Diversification is accomplish a balanced economy,, Diversification visions and strategies exist. There were and The, by producing an index with no qualitative/perceptions signs. The overall Worldwide EDI is made up of tracking. As commodity exporters diversify, lower their dependence on resource rents and possibly score a higher rating on the EDI.

For non-diversified countries, when rate of the commodity falls, there is a substantial decline in government earnings, public spending, bank account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not limited to just oil) over the, across 25 indicators (including three digital indications). North America, Western Europe and East Asia Pacific nations top EDI ratings throughout the years.

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


Although structural reforms and diversity efforts carried out by the GCC affected MENA's regional scores favorably, it still lags 5 other local groups., with the top 10 nations having less than a 10-point difference in scores (suggesting the strength of diversification)., along with four upper-middle income (China, Mexico, Turkey and Thailand) and one lower middle-income country (India, ranked 20th, driven by its services export boom).

Amongst the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, offered sped up diversification strategies of many oil-exporting nations. published a consistent improvement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a change in the composition of exports.

Comparing GCC Capital Incentives vs Emerging Markets

with oil exporters having the least expensive ratings (though specific country-specific efficiency has varied with 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. Throughout all areas, the mean rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was among the top ranked, while Mongolia's rating got worse compared to 2000)., however 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 variation most likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African nations account for around one-third of the total, followed by Latin America and the Middle East (the latter two together accounting for over 40% of the overall). Including, there has actually 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 rose 17 ranks throughout the duration. 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 average 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 recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & high-tech production information).

Evaluating GCC Investment Incentives vs Emerging Peers

Its diversification metrics have stagnated, showing the least improvement 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 application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly showing non-hydrocarbon tax base growths and profits collection performance enhancements", according to the IMF. In the present geopolitical environment characterized by magnifying, it remains in the very best interests of product reliant countries 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 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 ).

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 trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Benefits of Scaling Industrial Ventures in Middle East

reveals a significant boost in average EDI scores 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 outshining in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & state-of-the-art production data).

Its diversity metrics have actually stagnated, revealing the least improvement in between the initial (2000-04) and final (2020-24) reference 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base expansions and profits collection effectiveness enhancements", according to the IMF. In the present geopolitical environment defined by magnifying, it is in the best interests of product dependent nations to diversify its export base, exports and trade partners.

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