Creating Sustainable Financial Portfolios with Arabian Securities thumbnail

Creating Sustainable Financial Portfolios with Arabian Securities

Published Aug 15, 26
5 min read


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

Diversity is achieve a well balanced economy,, Diversification visions and strategies exist. There were and The, by developing an index with no qualitative/perceptions indicators. The total Global EDI is made up of tracking. As product exporters diversify, lower their reliance on resource rents and potentially score a higher rating on the EDI.

Optimizing Capital Strategies for a 2026 Economy

For non-diversified nations, when price of the product falls, there is a substantial decrease in federal government income, public costs, bank account balance and international reserves: more volatility. The (including major commodity exporters, not restricted to simply oil) over the, throughout 25 indicators (consisting of three digital signs). North America, Western Europe and East Asia Pacific countries top EDI ratings over 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 ratings favorably, it still lags five other regional groups., with the top 10 countries having less than a 10-point difference in scores (indicating 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).

Among the e. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given sped up diversification strategies of lots of oil-exporting nations. posted a stable improvement due to a combination of lowered dependence on fuel exports, decreased exports concentration and a modification in the composition of exports.

Comparing Regional Investment Incentives vs Emerging Peers

with oil exporters having the least expensive ratings (though private country-specific efficiency has actually 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 areas, the median rating is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was among the leading ranked, while Mongolia's rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among 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 region (with variation 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 2 together representing 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 5 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 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

shows 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 duration 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 (partly given the surge in medium & modern production data).

Vital Drivers Influencing Gulf Market Outlooks for 2026

Its diversity metrics have stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) recommendation periods., regardless 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 task pipeline and execution) 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 income collection performance enhancements", according to the IMF. In the current geopolitical environment characterized by intensifying, it is in the best interests of product 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 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 ).

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

Future Middle East Investment Shifts for 2026 World Markets

reveals a substantial 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 outshining in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & high-tech manufacturing information).

Its diversification metrics have actually stagnated, revealing the least enhancement in between the preliminary (2000-04) and final (2020-24) recommendation 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 job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base growths and earnings collection efficiency improvements", according to the IMF. In the present geopolitical environment defined by magnifying, it remains in the very best interests of product dependent countries to diversify its export base, exports and trade partners.

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