Key Factors Influencing Gulf Market Outlooks for 2026 thumbnail

Key Factors Influencing Gulf Market Outlooks for 2026

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5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the attractive opportunities of purchasing GCC Infrastructure, driven by the region's development and federal government efforts.

Diversity is attain a well balanced economy,, Diversity visions and methods exist. There were and The, by developing an index with no qualitative/perceptions indications. The total Worldwide EDI is composed of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a higher rating on the EDI.

REITs vs. Physical Property: Which Is Better for 2026?

For non-diversified nations, when cost of the product falls, there is a significant decline in government profits, public costs, bank account balance and worldwide reserves: more volatility. The (including major commodity exporters, not limited to simply oil) over the, across 25 signs (consisting of 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries top EDI ratings throughout the years.

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


Even though structural reforms and diversification efforts undertaken by the GCC impacted MENA's regional scores positively, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point distinction in ratings (suggesting the strength of diversity)., along with 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Among the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, offered sped up diversification plans of lots of oil-exporting countries. posted a constant enhancement due to a mix of lowered dependence on fuel exports, reduced exports concentration and a modification in the composition of exports.

The Role of FDI on GCC Economic Transformation

with oil exporters having the least expensive scores (though individual country-specific performance has actually differed gradually). 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 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 top ranked, while Mongolia's rating intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an enhancement amongst the top nations. By comparing the (height of the blue box), least variability is seen in South Asia in 2000 and the most in the MENA area (with variation most likely driven by the dichotomy within the area 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 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 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 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks during the period. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

reveals a substantial boost 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 & state-of-the-art production information).

Optimizing Capital Strategies for Next-Gen GCC Outlook

Its diversity metrics have stagnated, revealing the least improvement in between the preliminary (2000-04) and final (2020-24) referral periods., despite 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 performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base expansions and profits collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment identified by heightening, it is in the best interests of product reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent around one-third of the total, 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 five years pre- and post-pandemic ).

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

Comparing GCC Capital Incentives vs Emerging Peers

shows 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 current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & modern manufacturing data).

Its diversity metrics have actually stagnated, revealing the least enhancement between the initial (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 task pipeline and application) and strong services sector performance.

How Sovereign Wealth Funds Anchor Middle Eastern Markets During Volatility

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mainly reflecting non-hydrocarbon tax base expansions and revenue collection effectiveness improvements", according to the IMF. In the present geopolitical environment identified by heightening, it remains in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

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