Future GCC Market Trends for 2026 Global Markets thumbnail

Future GCC Market Trends for 2026 Global Markets

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Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the attractive opportunities of investing in GCC Facilities, driven by the area's growth and government efforts.

Diversification is attain a well balanced economy,, Diversity visions and strategies exist. However there were and The, by creating an index without any qualitative/perceptions indications. The general Global EDI is made up of tracking. As commodity exporters diversify, lower their reliance on resource leas and potentially score a greater rating on the EDI.

Optimizing Investment Diversification for a 2026 Economy

For non-diversified nations, when cost of the commodity falls, there is a significant decrease in federal government revenue, public costs, current account balance and international reserves: more volatility. The (consisting of major product exporters, not restricted to just oil) over the, throughout 25 indicators (consisting of 3 digital signs). The United States And Canada, Western Europe and East Asia Pacific nations leading EDI ratings throughout the years.

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


Despite the fact that structural reforms and diversity efforts undertaken by the GCC affected MENA's regional scores 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 diversification)., alongside 4 upper-middle income (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 stick out (when comparing 2024 vs 2000). years, provided accelerated diversity plans of many oil-exporting countries. published a consistent improvement due to a combination of lowered dependence on fuel exports, lowered exports concentration and a modification in the composition of exports.

Frameworks for Capital Allocation in 2026 World Markets

with oil exporters having the most affordable scores (though individual country-specific efficiency has differed in 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 typical rating 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 intensified compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement among 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 difference 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 overall, followed by Latin America and the Middle East (the latter two together representing 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 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 increased 17 ranks throughout the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

reveals a considerable increase in typical 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 exceeding 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 & modern manufacturing data).

Optimizing Capital Strategies for the Next-Gen GCC Economy

Its diversification metrics have stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) reference 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 task pipeline and implementation) and strong services sector efficiency.

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

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 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 24; both Saudi Arabia and Oman increased 17 ranks throughout the duration. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

Can GCC Non-Oil Success Exceed Global Averages?

shows 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 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 manufacturing data).

Its diversity metrics have stagnated, revealing the least improvement between the initial (2000-04) and final (2020-24) referral periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic demand (supported by a strong project pipeline and execution) and strong services sector performance.

The Rise of GCC Industrial Growth

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "primarily showing non-hydrocarbon tax base growths and revenue collection efficiency improvements", according to the IMF. In the current geopolitical environment defined by intensifying, it remains in the finest interests of product dependent nations to diversify its export base, exports and trade partners.

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