Navigating Middle East Stock Exchange Trends for 2026 thumbnail

Navigating Middle East Stock Exchange Trends for 2026

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5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA organization, outlines the attractive chances of buying GCC Infrastructure, driven by the region's development and government initiatives.

Diversity is accomplish a balanced economy,, Diversification visions and techniques 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 leas and potentially score a higher rating on the EDI.

Why GCC Becoming Primary Investment Powerhouse?

For non-diversified nations, when cost of the product falls, there is a significant decrease in federal government income, public spending, bank account balance and global reserves: more volatility. The (consisting of significant product exporters, not limited to just oil) over the, across 25 indicators (including three digital indications). The United States And Canada, Western Europe and East Asia Pacific nations top EDI ratings for many years.

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


Despite the fact that structural reforms and diversity efforts undertaken by the GCC impacted MENA's local ratings favorably, it still lags 5 other local groups., with the top 10 countries having less than a 10-point difference in scores (suggesting the strength of diversity)., together with 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 efficiency of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, provided sped up diversity plans of numerous oil-exporting countries. posted a stable enhancement due to a combination of reduced dependence on fuel exports, reduced exports concentration and a change in the composition of exports.

Vital Drivers Shaping GCC Market Forecasts by 2026

with oil exporters having the least expensive scores (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 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 leading ranked, while Mongolia's score got worse compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement among the leading nations. 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 difference most likely driven by the dichotomy within the area between the resource-heavy states (e.g.

Sub-Saharan African nations represent around one-third of the overall, 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 increased 17 ranks throughout 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 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 exceeding in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & state-of-the-art production information).

Will Gulf Industrial Success Outpace Global Averages?

Its diversity metrics have stagnated, revealing the least improvement in between the initial (2000-04) and last (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 execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "primarily showing non-hydrocarbon tax base growths and revenue collection efficiency improvements", according to the IMF. In the present geopolitical environment characterized by magnifying, it is in the best interests of commodity reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African nations account for around one-third of the overall, followed by Latin America and the Middle East (the latter two together accounting for 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 greater 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 during the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Role of FDI on GCC Industrial Development

reveals a substantial increase in average EDI scores 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 (partially provided the surge in medium & modern production data).

Its diversity metrics have actually stagnated, revealing the least enhancement in between the preliminary (2000-04) and final (2020-24) referral periods., in spite of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic demand (supported by a strong task pipeline and application) and strong services sector efficiency.

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

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