How Industrial Expansion Drives Middle East Growth for 2026

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the attractive chances of investing in GCC Facilities, driven by the area's development and government initiatives.

Diversity is attain a well balanced economy,, Diversity visions and techniques exist. But there were and The, by creating an index with no qualitative/perceptions indicators. The general Global EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource leas and possibly score a greater score on the EDI.

For non-diversified nations, when cost of the commodity falls, there is a significant decrease in government profits, public spending, bank 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 signs). North America, Western Europe and East Asia Pacific nations leading EDI ratings over the years.

ANSR July GCC PRs 50DR+

Although structural reforms and diversity efforts carried out by the GCC impacted MENA's regional ratings positively, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point difference in ratings (indicating the strength of diversity)., along 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. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given sped up diversity plans of numerous oil-exporting countries. posted a steady improvement due to a combination of minimized reliance on fuel exports, decreased exports concentration and a modification in the structure of exports.

Optimizing Capital Pipelines for 2026 Gulf Economy

with oil exporters having the most affordable ratings (though specific country-specific performance 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. Throughout all regions, the median score is the for both 2000 and 2024, and the highest in The United States and Canada.

In 2024, the (China was amongst the leading ranked, while Mongolia's score worsened compared to 2000)., but more to do with a "levelling up" at the bottom rather than an improvement amongst 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 variation likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African nations represent around one-third of the total, followed by Latin America and the Middle East (the latter two together representing over 40% of the overall). 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 ).

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 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has 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 surpassing in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & modern manufacturing information).

Is the Middle East Becoming Primary Industrial Hub?

Its diversification metrics have actually stagnated, revealing the least improvement in between the preliminary (2000-04) and last (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 demand (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, "mainly showing non-hydrocarbon tax base growths and revenue collection efficiency enhancements", according to the IMF. In the present geopolitical environment identified by magnifying, it is in the finest interests of product reliant nations 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 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 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 rose 17 ranks throughout the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Will GCC Industrial Growth Exceed Global Averages?

reveals a significant increase in typical 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 (partially offered the rise in medium & state-of-the-art production information).

Its diversity metrics have stagnated, showing the least enhancement between the preliminary (2000-04) and final (2020-24) referral periods., regardless 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 project pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "primarily showing non-hydrocarbon tax base expansions and earnings collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment defined by heightening, it is in the very best interests of commodity dependent countries to diversify its export base, exports and trade partners.