Key Factors Shaping GCC Economic Forecasts by 2026 thumbnail

Key Factors Shaping GCC Economic Forecasts by 2026

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, describes the attractive opportunities of investing in GCC Infrastructure, driven by the region's growth and government efforts.

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

For non-diversified nations, when cost of the product falls, there is a considerable decline in government earnings, public costs, bank account balance and international reserves: more volatility. The (consisting of major product exporters, not limited to simply oil) over the, across 25 indicators (including 3 digital signs). North America, Western Europe and East Asia Pacific nations leading EDI ratings for many years.

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


Even though structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional ratings favorably, it still lags 5 other regional groups., with the leading 10 nations having less than a 10-point distinction in scores (implying the strength of diversity)., alongside 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 stand out (when comparing 2024 vs 2000). years, given accelerated diversification plans of many oil-exporting nations. posted a steady improvement due to a combination of minimized reliance on fuel exports, minimized exports concentration and a modification in the composition of exports.

Benefits of Scaling Manufacturing Projects across Middle East

with oil exporters having the most affordable scores (though private country-specific performance has varied 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 areas, the mean score 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 got worse compared to 2000)., however more to do with a "levelling up" at the bottom rather than an improvement amongst 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 variance likely driven by the dichotomy within the area between the resource-heavy states (e.g.

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

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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the rise in medium & high-tech production information).

Future GCC Market Shifts for 2026 Global Markets

Its diversification metrics have actually stagnated, showing the least improvement in between the preliminary (2000-04) and final (2020-24) recommendation periods., regardless 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 implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base growths and earnings collection performance improvements", according to the IMF. In the present geopolitical environment identified by intensifying, it is in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations 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). 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 higher 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 trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

Roadmap to Gulf Financial Equity Trends for 2026

reveals a considerable 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 period versus 2020-24). with UAE exceeding in the trade sub-index (supported by recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & state-of-the-art manufacturing data).

Its diversification metrics have actually stagnated, showing the least improvement 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 need (supported by a strong project 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 profits collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment identified by heightening, it is in the finest interests of commodity reliant countries to diversify its export base, exports and trade partners.

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