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Why GCC Emerging as Global Investment Hub?

Published Aug 23, 26
5 min read


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

Diversity is achieve a well balanced economy,, Diversity visions and techniques exist. There were and The, by producing an index with no qualitative/perceptions signs. The overall Worldwide EDI is composed of tracking. As product exporters diversify, lower their reliance on resource rents and possibly score a higher rating on the EDI.

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

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


Although structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional ratings positively, it still lags five other regional groups., with the top 10 countries having less than a 10-point distinction in scores (indicating the strength of diversification)., alongside 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income country (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 out (when comparing 2024 vs 2000). years, offered sped up diversity strategies of numerous oil-exporting nations. published a consistent enhancement due to a combination of lowered dependence on fuel exports, reduced exports concentration and a modification in the structure of exports.

Benefits of Expanding Manufacturing Projects across Middle East

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 median score is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was amongst the leading ranked, while Mongolia's rating worsened compared to 2000)., however more to do with a "levelling up" at the bottom instead of an improvement among the leading countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (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 overall, 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+ANSR July GCC PRs 50DR+


and ranked greater than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

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

Guide to GCC Stock Market Success in 2026

Its diversification metrics have actually stagnated, showing the least enhancement between the preliminary (2000-04) and final (2020-24) recommendation 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 an increase in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base expansions and earnings collection performance enhancements", according to the IMF. In the existing geopolitical environment characterized by heightening, it remains in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent 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 ).

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

The Role of FDI on GCC Economic Transformation

reveals a considerable 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the rise in medium & state-of-the-art manufacturing information).

Its diversity metrics have actually stagnated, showing the least improvement between the preliminary (2000-04) and final (2020-24) reference periods., in spite of 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 execution) and strong services sector performance.

Why Industrial Expansion Boosts Middle East Stability for 2026

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness improvements", according to the IMF. In the present geopolitical environment characterized by magnifying, it remains in the finest interests of commodity dependent countries to diversify its export base, exports and trade partners.

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