Can GCC Industrial Success Outpace Western Benchmarks? thumbnail

Can GCC Industrial Success Outpace Western Benchmarks?

Published Aug 14, 26
5 min read


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

Diversity is attain a well balanced economy,, Diversification visions and techniques exist. The overall Global EDI is made up of tracking.

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For non-diversified countries, when cost of the product falls, there is a considerable decline in government profits, public spending, bank account balance and global reserves: more volatility. The (consisting of major commodity exporters, not restricted to just oil) over the, across 25 indicators (including 3 digital indicators). North America, Western Europe and East Asia Pacific countries top EDI ratings throughout the years.

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


Even though structural reforms and diversification efforts undertaken by the GCC affected MENA's local ratings positively, it still lags five other regional groups., with the leading 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversity)., 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, provided accelerated diversification strategies of lots of oil-exporting nations. published a stable improvement due to a mix of decreased reliance on fuel exports, lowered exports concentration and a change in the composition of exports.

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with oil exporters having the least expensive scores (though specific country-specific efficiency has 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 typical score is the for both 2000 and 2024, and the greatest in The United States and Canada.

In 2024, the (China was among the leading ranked, while Mongolia's rating got worse compared to 2000)., however more to do with a "levelling up" at the bottom instead of an improvement among the leading 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 variance most likely driven by the dichotomy within the area in between the resource-heavy states (e.g.

Sub-Saharan African countries account for 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 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 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 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 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 & state-of-the-art manufacturing information).

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Its diversity metrics have stagnated, revealing the least improvement in between the preliminary (2000-04) and last (2020-24) recommendation 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 task pipeline and execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "primarily reflecting non-hydrocarbon tax base growths and revenue collection efficiency enhancements", according to the IMF. In the current geopolitical environment characterized by magnifying, it is in the very best interests of product reliant countries to diversify its export base, exports and trade partners.

Sub-Saharan African nations represent around one-third of the total, followed by Latin America and the Middle East (the latter 2 together representing over 40% of the overall). 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 rose 17 ranks during the period. The trapped or even worse off countries are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

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reveals a considerable boost in typical EDI ratings 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 exceeding 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).

Its diversification metrics have actually stagnated, showing the least enhancement in between the preliminary (2000-04) and final (2020-24) recommendation 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 task pipeline and implementation) and strong services sector performance.

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

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