A majority of chief executive officers (CEOs) in the Middle East are optimistic about the region’s growth prospects this year, according to the recent findings by PwC’s global CEO survey.
The survey polled 4,400 CEOs in 64 countries, and found that CEOs in the Middle East are “confident in regional growth and are transforming their businesses embracing new technologies, investing, driving cost efficiencies, moving on deal activity and taking active steps to mitigate the risk of climate change,” the study said.
Middle East CEOs
However, 82 percent of regional CEOs are expecting a “decline in global growth” in the next 12 months.
PWC Middle East’s senior partner Hani Ashkar also added that macroeconomic volatility and geopolitical tensions “are undoubtedly impacting the confidence of global CEOs’ outlook for the year ahead.”
Ashkar added, however, that survey responses from Middle East CEOs “paint an encouraging picture for 2023, with almost 61 percent of Middle East CEOs expecting regional economic growth to improve in 2023.”
Ashkar also said that the responses showed how many leaders are “moving ahead to future-proof their companies and stay ahead of longer-term challenges.”
According to the survey, CEOs in the Middle East are focused on three main areas:
- Transforming business to ensure long-term viability
- Investing in digitalisation and talent
- Taking action to mitigate climate risk
About 58 percent of CEOs in the Middle East are preparing for a “dynamic period” by transforming their businesses. This includes strengthening their supply chains, proactively “accelerating M&A activity with 76 percent not delaying deals.”
70 percent of Middle East executives are looking to push through price increases and 84 percent, seeking to reduce operating costs in their supply chains.
In addition, CEOs see technology as a “prominent feature in their plans”. Over four in five regional CEOs expect to invest in automation processes and systems in 2023, and 66 percent expecting to deploy cloud technology, artificial intelligence, and other advanced technologies in operations, the study said.
Retaining and increasing also continue to remain a “key focus” the study said, showing that 74 percent of Middle East CEOs expect to “invest in reskilling their workforce, in addition to 84 percent of regional leaders planning on not reducing staff compensation.”
As for mitigating climate risk, 50 percent of Middle East CEOs are taking steps to mitigate climate risk or innovating new products and processes to lower their carbon footprint and cut emissions, the study said.
“CEOs are turbocharging on digital transformation through further investment and, as the ESG agenda continues to play an important and strategic role in reimagining a sustainable future for our region, it is evident from our latest survey that the story has moved from talk and reflection to action when it comes to climate change,” PWC Middle East Strategy and Markets Leader Stephen Anderson.
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