Is the Middle East Emerging as Global Industrial Hub?

Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, lays out the attractive chances of buying GCC Infrastructure, driven by the area's growth and government efforts.

Diversification is achieve a well balanced economy,, Diversification visions and techniques exist. But there were and The, by producing an index without any qualitative/perceptions indications. The overall International EDI is composed of tracking. As commodity exporters diversify, lower their reliance on resource leas and possibly score a greater score on the EDI.

For non-diversified nations, when cost of the product falls, there is a significant decline in government earnings, public spending, present account balance and global reserves: more volatility. The (including significant commodity exporters, not restricted to simply oil) over the, throughout 25 indications (including 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations leading EDI scores throughout the years.

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 5 other local groups., with the leading 10 nations having less than a 10-point difference in scores (indicating the strength of diversity)., along with 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. nations ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, provided sped up diversification strategies of lots of oil-exporting nations. published a steady improvement due to a mix of lowered dependence on fuel exports, reduced exports concentration and a change in the structure of exports.

Refining Investment Strategies for the Next-Gen GCC Outlook

with oil exporters having the most affordable scores (though private country-specific performance has 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 rating is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was amongst the leading ranked, while Mongolia's rating worsened compared to 2000)., but more to do with a "levelling up" at the bottom rather than an enhancement 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 variance most likely driven by the dichotomy within the region 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 accounting for over 40% of the total). 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+

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

shows a significant boost in typical EDI scores from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the initial period versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & state-of-the-art manufacturing data).

Is GCC Becoming Primary Industrial Powerhouse?

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

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly showing non-hydrocarbon tax base growths and revenue collection effectiveness enhancements", according to the IMF. In the present geopolitical environment identified by magnifying, it remains in the best interests of commodity dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries 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 ).

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 during the period. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has stalled.

Upcoming Middle East Investment Shifts for 2026 World Markets

shows a significant 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 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 (partly given the rise in medium & high-tech manufacturing information).

Its diversity metrics have actually stagnated, showing the least improvement in between the preliminary (2000-04) and last (2020-24) referral periods., regardless of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic need (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, "primarily showing non-hydrocarbon tax base growths and income collection performance enhancements", according to the IMF. In the present geopolitical environment characterized by magnifying, it is in the finest interests of commodity dependent nations to diversify its export base, exports and trade partners.