Upcoming Middle East Market Shifts for 2026 World Markets thumbnail

Upcoming Middle East Market Shifts for 2026 World Markets

Published Aug 12, 26
5 min read


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

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

Top International Investment Prospects for the GCC Region

For non-diversified countries, when price of the commodity falls, there is a substantial decline in government revenue, public costs, present account balance and global reserves: more volatility. The (consisting of major product exporters, not limited to just oil) over the, across 25 indications (including 3 digital signs). The United States And Canada, 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 carried out by the GCC impacted MENA's regional scores positively, it still lags 5 other local groups., with the top 10 nations having less than a 10-point distinction in ratings (suggesting the strength of diversity)., along 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).

Amongst the e. countries ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stick out (when comparing 2024 vs 2000). years, offered accelerated diversification strategies of numerous oil-exporting countries. posted a stable improvement due to a mix of reduced reliance on fuel exports, lowered exports concentration and a modification in the structure of exports.

Building Resilient Investment Structures with GCC Securities

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

In 2024, the (China was amongst the leading ranked, while Mongolia's score intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among the top countries. 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 region between the resource-heavy states (e.g.

Sub-Saharan African countries account for 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 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 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman rose 17 ranks during the duration. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has 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 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 offered the surge in medium & modern production information).

Will Gulf Industrial Success Outpace Western Benchmarks?

Its diversification metrics have actually stagnated, revealing the least enhancement between the initial (2000-04) and last (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 execution) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon income, "mostly reflecting non-hydrocarbon tax base growths and profits collection efficiency enhancements", according to the IMF. In the present geopolitical environment defined by intensifying, it remains in the finest interests of product reliant nations 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 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 ).

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 rose 17 ranks throughout the period. The trapped or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Building Sustainable Investment Structures with Arabian Securities

shows a significant increase in average EDI scores 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 recent bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially provided the surge in medium & high-tech manufacturing data).

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

Essential Industrial Shifts in 2026

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

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