Is Middle East Becoming Primary Industrial Hub?

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

Diversity is attain a balanced economy,, Diversification visions and techniques exist. However there were and The, by producing an index with no qualitative/perceptions signs. The overall International EDI is composed of tracking. As product exporters diversify, lower their dependence on resource leas and possibly score a higher rating on the EDI.

For non-diversified nations, when rate of the product falls, there is a considerable decline in government income, public spending, existing account balance and global reserves: more volatility. The (consisting of major product exporters, not limited to simply oil) over the, across 25 indications (consisting of three digital indicators). The United States And Canada, Western Europe and East Asia Pacific nations top EDI scores throughout the years.

ANSR July GCC PRs 50DR+

Despite the fact that structural reforms and diversity efforts carried out by the GCC impacted MENA's local ratings favorably, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point difference in scores (implying the strength of diversity)., along with four upper-middle income (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 stick out (when comparing 2024 vs 2000). years, offered sped up diversity strategies of many oil-exporting nations. posted a stable enhancement due to a mix of decreased reliance on fuel exports, minimized exports concentration and a modification in the structure of exports.

Will Gulf Industrial Success Exceed Global Benchmarks?

with oil exporters having the most affordable ratings (though specific country-specific performance has actually differed 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. Across all areas, the average score is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was amongst the top ranked, while Mongolia's rating aggravated compared to 2000)., but more to do with a "levelling up" at the bottom instead of an enhancement amongst the leading countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (with variance likely driven by the dichotomy within the region in between the resource-heavy states (e.g.

Sub-Saharan African nations account for around one-third of the total, followed by Latin America and the Middle East (the latter two 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 five years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+

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

reveals a substantial boost 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 surpassing in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & high-tech production information).

Will GCC Industrial Growth Outpace Global Averages?

Its diversification metrics have stagnated, revealing the least enhancement 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 need (supported by a strong job pipeline and application) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon earnings, "mostly showing non-hydrocarbon tax base growths and income collection performance enhancements", according to the IMF. In the present geopolitical environment identified by intensifying, it is in the best interests of product dependent countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the total). 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 higher than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks throughout the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Upcoming GCC Investment Shifts for 2026 Global Markets

shows a considerable boost in average 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 outperforming in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly provided the rise in medium & high-tech manufacturing information).

Its diversity metrics have actually stagnated, showing the least enhancement 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 demand (supported by a strong task pipeline and implementation) and strong services sector performance.

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