Advantages of Scaling Manufacturing Projects in Middle East thumbnail

Advantages of Scaling Manufacturing Projects in Middle East

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA business, outlines the appealing chances of purchasing GCC Infrastructure, driven by the area's development and government initiatives.

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

Securing Middle East Investments for 2026 Shifts

For non-diversified countries, when cost of the commodity falls, there is a considerable decline in federal government revenue, public costs, current account balance and global reserves: more volatility. The (consisting of major commodity exporters, not restricted to just oil) over the, throughout 25 indications (including 3 digital indicators). North America, Western Europe and East Asia Pacific nations leading EDI scores over the years.

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


Despite the fact that structural reforms and diversity efforts undertaken by the GCC impacted MENA's regional scores favorably, it still lags five other regional groups., with the top 10 nations having less than a 10-point distinction in ratings (implying the strength of diversity)., together 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).

Amongst the e. countries ranked 51 to 70, the efficiency of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given accelerated diversity plans of many oil-exporting countries. posted a steady enhancement due to a combination of lowered dependence on fuel exports, decreased exports concentration and a change in the structure of exports.

Essential Global Investment Opportunities across GCC Market

with oil exporters having the most affordable ratings (though specific country-specific performance has actually varied gradually). 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 score is the for both 2000 and 2024, and the greatest in The United States and Canada.

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

Sub-Saharan African nations represent 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 ).

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 period. The caught or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural improvement has actually stalled.

reveals 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 duration versus 2020-24). with UAE outshining 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 & state-of-the-art production information).

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Its diversification metrics have stagnated, revealing the least enhancement between the preliminary (2000-04) and final (2020-24) referral periods., in spite 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 project pipeline and implementation) and strong services sector efficiency.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base growths and revenue collection efficiency enhancements", according to the IMF. In the current geopolitical environment characterized by magnifying, it remains in the best interests of commodity dependent nations 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 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 rose 17 ranks throughout the duration. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

Is the Middle East Becoming Global Industrial Powerhouse?

shows a significant boost in typical 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 outshining in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partially given the surge in medium & high-tech production information).

Its diversification metrics have actually stagnated, showing the least enhancement between the preliminary (2000-04) and final (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 need (supported by a strong project pipeline and execution) and strong services sector efficiency.

2026 Business Climate of Arabia

Kuwait and Saudi Arabia clocked in an increase in non-hydrocarbon profits, "primarily showing non-hydrocarbon tax base growths and income collection performance improvements", according to the IMF. In the existing geopolitical environment defined by magnifying, it is in the best interests of product dependent nations to diversify its export base, exports and trade partners.

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