Is Middle East Emerging as Primary Investment Hub?

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, describes the appealing opportunities of investing in GCC Facilities, driven by the region's development and federal government initiatives.

Diversity is accomplish a balanced economy,, Diversification visions and strategies exist. However there were and The, by creating an index with no qualitative/perceptions signs. The total Global EDI is composed of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a greater rating on the EDI.

For non-diversified nations, when price of the commodity falls, there is a considerable decline in government earnings, public costs, present account balance and worldwide reserves: more volatility. The (consisting of significant product exporters, not limited to simply oil) over the, across 25 signs (including 3 digital indications). North America, Western Europe and East Asia Pacific countries 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 favorably, it still lags five other regional groups., with the top 10 nations having less than a 10-point difference in ratings (suggesting the strength of diversification)., along with four upper-middle earnings (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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, given sped up diversity strategies of numerous oil-exporting nations. posted a steady improvement due to a mix of reduced dependence on fuel exports, reduced exports concentration and a change in the composition of exports.

Why Middle East Becoming Primary Industrial Powerhouse?

with oil exporters having the least expensive scores (though individual 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. Throughout all regions, the average score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the top ranked, while Mongolia's score intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement amongst the leading 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 countries account for around one-third of the total, followed by Latin America and the Middle East (the latter 2 together representing over 40% of the overall). Consisting of, 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+

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 rose 17 ranks throughout the period. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals a substantial increase in typical 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 current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the surge in medium & high-tech manufacturing information).

Why Economic Diversification Drives Middle East Growth in 2026

Its diversification metrics have stagnated, showing the least improvement between the preliminary (2000-04) and last (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 need (supported by a strong job pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly showing non-hydrocarbon tax base expansions and profits collection efficiency improvements", according to the IMF. In the current geopolitical environment identified by intensifying, it is in the very best interests of commodity dependent 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 2 together accounting for 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 five 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 increased 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 stalled.

Will Gulf Non-Oil Growth Outpace Global Benchmarks?

shows a considerable 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 agreements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech manufacturing information).

Its diversification metrics have stagnated, showing the least improvement 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 need (supported by a strong project pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon income, "mainly reflecting non-hydrocarbon tax base growths and revenue collection efficiency improvements", according to the IMF. In the present geopolitical environment identified by heightening, it is in the finest interests of commodity reliant nations to diversify its export base, exports and trade partners.