Vital Drivers Influencing GCC Economic Outlooks for 2026 thumbnail

Vital Drivers Influencing GCC Economic Outlooks for 2026

Published Aug 18, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, details the appealing opportunities of purchasing GCC Infrastructure, driven by the area's growth and government initiatives.

Diversification is accomplish a well balanced economy,, Diversification visions and strategies exist. The general Global EDI is composed of tracking.

Why Industrial Expansion Drives GCC Growth in 2026

For non-diversified countries, when price of the product falls, there is a considerable decline in government earnings, public spending, current account balance and global reserves: more volatility. The (consisting of major commodity exporters, not restricted to simply oil) over the, across 25 signs (including three digital indications). North America, Western Europe and East Asia Pacific nations top EDI scores over the years.

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


Despite the fact that structural reforms and diversity efforts carried out by the GCC impacted MENA's local scores favorably, it still lags 5 other regional groups., with the leading 10 nations having less than a 10-point distinction in scores (indicating the strength of diversification)., alongside four upper-middle income (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 stick out (when comparing 2024 vs 2000). years, provided sped up diversity strategies of many oil-exporting countries. posted a steady enhancement due to a mix of minimized dependence on fuel exports, lowered exports concentration and a modification in the composition of exports.

Roadmap to GCC Stock Market Success in 2026

with oil exporters having the least expensive ratings (though specific country-specific performance has actually differed over 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 mean rating is the for both 2000 and 2024, and the greatest in North America.

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 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 difference most 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). 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 ).

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 throughout the duration. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has actually stalled.

reveals 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 preliminary duration versus 2020-24). with UAE surpassing in the trade sub-index (supported by recent bilateral trade agreements & non-oil exports push). vs its pre-pandemic reading (partly offered the rise in medium & high-tech production data).

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Its diversification metrics have stagnated, revealing 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 execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base expansions and income collection performance enhancements", according to the IMF. In the current geopolitical environment defined by magnifying, it remains in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African countries represent around one-third of the overall, followed by Latin America and the Middle East (the latter two together representing 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 places in 2024 compared to 2000 while Qatar climbed up 24; both Saudi Arabia and Oman increased 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.

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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 initial period versus 2020-24). with UAE surpassing in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partly given the rise in medium & modern manufacturing data).

Its diversity metrics have actually stagnated, revealing the least enhancement between the initial (2000-04) and last (2020-24) referral periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic demand (supported by a strong task pipeline and application) and strong services sector performance.

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Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily showing non-hydrocarbon tax base growths and income collection effectiveness enhancements", according to the IMF. In the existing geopolitical environment defined by intensifying, it is in the finest interests of product dependent countries to diversify its export base, exports and trade partners.

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