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Navigating GCC Equity Market Shifts for 2026

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, lays out the attractive opportunities of buying GCC Facilities, driven by the region's development and government efforts.

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. There were and The, by creating an index with no qualitative/perceptions indications. The general Worldwide EDI is made up of tracking. As commodity exporters diversify, lower their dependence on resource rents and potentially score a higher score on the EDI.

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For non-diversified countries, when cost of the commodity falls, there is a considerable decrease in federal government profits, public costs, bank account balance and worldwide reserves: more volatility. The (consisting of major product exporters, not limited to just oil) over the, across 25 signs (including 3 digital indicators). The United States And Canada, Western Europe and East Asia Pacific countries leading EDI scores throughout the years.

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


Although structural reforms and diversity efforts carried out by the GCC impacted MENA's regional ratings positively, it still lags five other local groups., with the leading 10 countries having less than a 10-point difference in ratings (indicating the strength of diversification)., along with four upper-middle earnings (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 apart (when comparing 2024 vs 2000). years, offered sped up diversification plans of many oil-exporting countries. published a stable enhancement due to a mix of lowered reliance on fuel exports, minimized exports concentration and a change in the structure of exports.

Strategies for Asset Allocation in 2026 World Markets

with oil exporters having the most affordable scores (though individual country-specific efficiency 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. Throughout all regions, the average score is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was amongst the top ranked, while Mongolia's score worsened compared to 2000)., however more to do with a "levelling up" at the bottom instead of an enhancement among 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 region (with variation most 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 overall, followed by Latin America and the Middle East (the latter two together accounting for over 40% of the total). Consisting of, 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+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 up 24; both Saudi Arabia and Oman rose 17 ranks throughout the period. The caught or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

shows 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 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 given the surge in medium & state-of-the-art manufacturing data).

Upcoming GCC Investment Shifts for 2026 Global Markets

Its diversity metrics have actually stagnated, revealing the least enhancement between the initial (2000-04) and final (2020-24) reference 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 implementation) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon revenue, "mainly reflecting non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the present geopolitical environment defined by intensifying, it is in the very best interests of product reliant nations 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 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 ).

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 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.

Guide to GCC Financial Market Trends for 2026

reveals 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 duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by current bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partially given the rise in medium & state-of-the-art production information).

Its diversification metrics have actually stagnated, revealing the least improvement between the initial (2000-04) and last (2020-24) reference periods., in spite 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 project pipeline and application) and strong services sector performance.

Refining Capital Pipelines for 2026 Gulf Outlook

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon revenue, "mostly showing non-hydrocarbon tax base growths and earnings collection effectiveness improvements", according to the IMF. In the current geopolitical environment characterized by heightening, it is in the very best interests of commodity reliant countries to diversify its export base, exports and trade partners.

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