Analyzing Middle East Stock Market Trends through 2026 thumbnail

Analyzing Middle East Stock Market Trends through 2026

Published Aug 18, 26
5 min read


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

Diversification is achieve a well balanced economy,, Diversification visions and strategies exist. However there were and The, by producing an index without any qualitative/perceptions signs. The overall International EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a greater score on the EDI.

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For non-diversified countries, when rate of the product falls, there is a substantial decrease in government earnings, public costs, existing account balance and global reserves: more volatility. The (including major product exporters, not limited to simply oil) over the, across 25 indications (including three digital indicators). North America, Western Europe and East Asia Pacific countries top EDI scores for many years.

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


Although structural reforms and diversification efforts undertaken by the GCC impacted MENA's regional scores positively, it still lags five other local groups., with the leading 10 nations having less than a 10-point difference in ratings (indicating the strength of diversification)., together 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).

Among the e. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided accelerated diversification plans of many oil-exporting countries. published a steady enhancement due to a mix of lowered dependence on fuel exports, lowered exports concentration and a modification in the composition of exports.

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with oil exporters having the lowest ratings (though specific country-specific efficiency has varied 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. Across all regions, the mean score is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement amongst the leading 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 difference likely driven by the dichotomy within the region 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 accounting for 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 ).

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 rose 17 ranks throughout the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

shows a significant 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 outshining in the trade sub-index (supported by recent bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & modern production information).

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Its diversity metrics have actually stagnated, showing the least improvement in between the initial (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 demand (supported by a strong task pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "mostly showing non-hydrocarbon tax base expansions and income collection performance enhancements", according to the IMF. In the current geopolitical environment characterized by magnifying, it remains in the very best interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries represent around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together representing over 40% of the overall). Including, there has been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the 5 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 rose 17 ranks throughout the period. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

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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 initial duration versus 2020-24). with UAE outperforming in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & state-of-the-art manufacturing information).

Its diversity metrics have actually stagnated, showing the least improvement in between the initial (2000-04) and last (2020-24) recommendation 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 job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mostly reflecting non-hydrocarbon tax base expansions and income collection performance improvements", according to the IMF. In the current geopolitical environment identified by heightening, it remains in the best interests of product reliant countries to diversify its export base, exports and trade partners.

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