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MBRSG Unveils Global Economic Diversification Index 2026

MBRSG Unveils Global Economic Diversification Index 2026

4 February 2026

The Mohammed Bin Rashid School of Government (MBRSG) launched its fifth annual Global Economic Diversification Index (EDI) 2026 report, as the only global measure of national progress in building resilient, diversified economies. Published as an official World Government Summit annual report, the latest EDI reveals a global economic landscape increasingly shaped by major disruptions, including the imperative for green transition and the transformative power of digitalisation.

MBRSG’s Executive President His Excellency Dr. Ali bin Sebaa Al Marri, commented: “The 2026 Global EDI not only quantifies diversification but also illuminates the shifts underway in the global economy. Digitalisation is now a central driver reshaping how nations build resilient and diversified futures. Our findings underscore the urgent need for strategic investments in digital infrastructure and skills to ensure this transformation is inclusive and equitable. The report also reveals how AI can be a gamechanger for countries to leapfrog traditional industrial stages and export efficiency, not just physical goods. The UAE's exemplary progress, underscored by its elevated Trade+ scores, serves as a testament to how visionary leadership can effectively harness digital advancements to build a truly diversified and resilient future.”

The EDI, a unique data-driven tool, quantifies economic diversification across 117 countries and assesses 25 years of progress (2000-2024). It examines three critical dimensions: Output, Trade, and Government Revenue diversification, providing governments with the ability to measure the success of their diversification policies and strategically navigate global disruptions.

The EDI 2026 reveals that the United States, China, and Germany continue to lead, with Western European nations dominating the top 20 ranks on most diversified economies, and notably, India emerging as the sole lower-middle-income country in the top 30. The report strongly recommends a multi-dimensional approach to diversification, emphasising digitalisation, green energy acceleration, regional integration, and strengthened fiscal sovereignty. 

In the MENA region, economic diversification has improved significantly over the past quarter-century, with the UAE and Bahrain demonstrating higher EDI scores among GCC countries, and Saudi Arabia, Qatar, and Oman making substantial gains, although Saudi Arabia's 2024 score was still below its pre-pandemic level despite accelerated reforms across the region. 

“The MBRSG designed the EDI to serve as a comprehensive policy tool, aiding governments in understanding and implementing successful diversification plans”, stated Dr. Fadi Salem, Director of Policy Research at MBRSG and co-author of the report. “In its 5th edition, the Global EDI is now an influential and universally-established policy tool, utilized officially by international organizations, such as United Nations agencies and by government institutions tasked with advancing economic diversification on national levels worldwide”.

The EDI continues to provide unique insights on the impact on digital trade on economic diversifications, through the “EDI Plus” instrument, which integrates three digital trade-specific indicators. This year’s results reveal that digitalisation is profoundly reshaping diversification pathways, with advanced economies seeing their rankings further enhanced, while lower-middle-income economies experiencing a significant upward jump in their EDI+ scores. Overall, the EDI+ results underscore the growing influence of digital trade in the global economy. However, the EDI+ also warns that without substantial investment in digital public infrastructure, skills, and data governance, digitalisation risks creating a new divide between data-rich economies and commodity producers.

The UAE, in particular, shows notable progress, with its Trade+ scores improving significantly, indicating its successful leveraging of digitalisation and digital economy sectors in its diversification efforts.

The MBRSG designed the EDI following a 'reproducible research' framework, relying solely on verified publicly available quantitative indicators, data, and information, free from subjective perception surveys. The MBRSG also launched the Global Conference on Economic Diversification (GCED), convening thought leaders from renowned universities, policy-making institutions, and international organisations. The next GCED conference will take place in 2027. 

Through its Policy Research Department, the MBRSG strives to enrich government decision-making locally and internationally, offering primary data sets and evidence-based recommendations across various policy domains. The full EDI 2026 report, including detailed findings, datasets, and interactive visualizations, is available on the EDI’s official website: www.EconomicDiversification.com
 

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