Business Insider has listed Saudi Arabia and Egypt among the 32 countries expected to have the most powerful economies in the world by 2030. The two Arab countries landed in the top 20.

Saudi Arabia claimed 13th place, while Egypt took 19th place. Both are expected to remain in the top 20 in 2050.

Business Insider cites a report released by PricewaterhouseCoopers (PWC), which is one of the world's largest professional-services firms. 

The ranking is based on the predicted gross domestic product at purchasing power parity (GDP at PPP).

GDP is one of the primary indicators used to assess a country's economy, as it represents the total value of goods produced and services provided over a period of time. Meanwhile, PPP is an economic theory used to compare countries' economies.

In other words, the report mainly takes into account goods and services produced in a country, along with economic productivity and standards of living.

The 32 countries included in the list are expected to hold around 85% of the world GDP by 2030. 

In Saudi Arabia, diversification of the economy will go a long way

The PWC report predicts that Saudi Arabia will have the 13th most powerful economy in the world by 2030, based on its GDP at PPP. It is expected to remain in that spot in 2050.

The kingdom ranked 15th place in 2016.

By 2050, Saudi Arabia is expected to witness a 1.1% population growth and a 3% GDP growth.

The report states that diversification of the economy is essential to sustaining a long-term economic growth in Saudi Arabia, whose economy primarily relies on oil production. This is consistent with the kingdom's recently-announced plans to invest $30 to $50 billion in renewable energy by 2032.

PWC also reveals that Saudi Arabia has marked a slowdown in GDP growth over the past two years. Researchers expect the kingdom to fall into an economic recession this year.

However, economic reforms are a major part of deputy crown prince Mohammed bin Salman's Vision 2030 reform plan for the kingdom, which was approved by the Saudi cabinet last June. Vision 2030 aims to create jobs, implement taxes, cut subsidies and diversify the kingdom's economy.

Egypt is poised for an expansion in its workforce and a rise in startup activity

PWC predicts Egypt to have the world's 19th largest economy by 2030. It is expected to climb further and claim 15th place by 2050.

Egypt currently stands in 21st place. 

By 2050, it is expected to witness a 1.4% population growth and 4.1% GDP growth.

The findings also suggest a rise in startup activity due to a drop in the cost of starting a business in the country.

The report attributes the predicted GDP growth to the increase in the number of people within the working age, as that would lead to the expansion of the national workforce. A boost in the economy would follow if enough jobs were created for people joining the labor force.

While the report forecasts a growth in the Egyptian economy, the country is currently suffering from an economic crisis. Egypt has faced severe shortage of dollar liquidity, pushing the country’s central bank to float the Egyptian pound's value last November. Subsequently, Egyptians have been struggling with rising prices and worsening living conditions.