Will Gulf Industrial Growth Exceed Western Benchmarks? thumbnail

Will Gulf Industrial Growth Exceed Western Benchmarks?

Published Aug 18, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the appealing opportunities of buying GCC Facilities, driven by the area's development and federal government initiatives.

Diversity is achieve a balanced economy,, Diversity visions and strategies exist. The general Global EDI is made up of tracking.

For non-diversified countries, when cost of the commodity falls, there is a substantial decrease in government revenue, public costs, bank account balance and worldwide reserves: more volatility. The (consisting of significant product exporters, not limited to simply oil) over the, across 25 indicators (consisting of three digital signs). North America, Western Europe and East Asia Pacific countries leading EDI scores throughout the 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 top 10 countries having less than a 10-point distinction in ratings (suggesting 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 performance of Moldova, Indonesia, Armenia and Honduras stand apart (when comparing 2024 vs 2000). years, given accelerated diversification strategies of lots of oil-exporting countries. published a consistent enhancement due to a combination of minimized reliance on fuel exports, reduced exports concentration and a change in the composition of exports.

Top Foreign Capital Opportunities within Middle East Market

with oil exporters having the most affordable ratings (though individual country-specific efficiency has actually 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 regions, the median rating is the for both 2000 and 2024, and the greatest in North America.

In 2024, the (China was among the leading ranked, while Mongolia's rating intensified compared to 2000)., but more to do with a "levelling up" at the bottom instead of an improvement among the top nations. 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 variation most likely driven by the dichotomy within the region between the resource-heavy states (e.g.

Sub-Saharan African countries represent around one-third of the total, followed by Latin America and the Middle East (the latter two together representing over 40% of the overall). 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+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 24; both Saudi Arabia and Oman increased 17 ranks during the duration. The caught or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural transformation has actually stalled.

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 duration versus 2020-24). with UAE outshining in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly provided the rise in medium & modern manufacturing information).

Comparing GCC Capital Incentives vs Emerging Markets

Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and last (2020-24) recommendation 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 efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base expansions and profits collection efficiency improvements", according to the IMF. In the present geopolitical environment defined by intensifying, it remains in the finest interests of commodity reliant nations to diversify its export base, exports and trade partners.

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). 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 up 24; both Saudi Arabia and Oman rose 17 ranks throughout the period. The trapped or worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Advantages of Expanding Manufacturing Projects across the GCC

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 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 offered the rise in medium & modern manufacturing data).

Its diversity metrics have stagnated, showing the least improvement between the preliminary (2000-04) and final (2020-24) referral periods., regardless of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic demand (supported by a strong job pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and revenue collection performance improvements", according to the IMF. In the existing geopolitical environment characterized by heightening, it is in the very best interests of commodity dependent nations to diversify its export base, exports and trade partners.

Share us on...

Latest Posts

Roadmap to Gulf Stock Equity Trends in 2026

Published Aug 28, 26
4 min read