Amidst growing developmental needs, the Arab region faces increasing climate change risks projected to amplify preexisting social, economic, and environmental challenges in the region. Sustaining climate action – reducing greenhouse gas emissions (GHG) and enhancing resilience - is of paramount importance. However, the impacts of these efforts extend beyond the environmental scope.

The pursuit of economic diversification has emerged as a key policy objective for nations reliant on commodity production. Its aim is to mitigate volatility, foster sustainable economic growth and development, generate employment opportunities, and cultivate a more robust private sector while ensuring sound public finances. Despite considerable research focusing on the determinants of economic diversification and the efficacy of related policies in driving economic advancement, a universally accepted measure or index of economic diversification was lacking until the inception of the Global Economic Diversification Index (EDI) in 2022. 

Economic diversification has been a guiding  policy theme for commodity producing nations to minimize volatility,  support economic growth and development, create jobs. alongside greater private sector activity and more sustainable public finances. While research about economic diversification centers around its determinants and the impact of policies on economic development, there had been no agreed,  available measure or index of economic diversification till the first edition of the Global Economic Diversification Index (EDI) was published in 2022.

The world economies are shifting dramatically, driven by systemic transformations and fueled by rapid digitization, geopolitical realignments, environmental pressures, the implications of the COVID-19 pandemic, the dynamics of the fourth industrial revolution, and in response to the Sustainable Development Goals. 

The world economies are shifting dramatically, driven by systemic transformations and fueled by rapid digitization, geopolitical realignments, environmental pressures, the implications of the COVID-19 pandemic, the dynamics of the fourth industrial revolution, and in response to the Sustainable Development Goals.