UAE CEOs are better placed than their global counterparts to respond to an economic crisis, a KPMG study revealed. 68 percent of local executives are diversifying their businesses as compared to a minority of 32 percent of global CEOs. This puts them ahead of their global counterparts by at least six months.
The KPMG 2022 CEO Outlook Survey polled 1,325 CEOs from 43 countries including 25 from the UAE.
CEOs surveyed in the UAE expressed optimism about their business prospects with 60 percent expecting increased earnings of 2.5 to 4.5 percent annually, over the next three years.
“The UAE has one of the most diversified economies in the region, which has enabled it to withstand a number of challenges, right from the global pandemic to geopolitical uncertainly and macro-economic challenges,” said Nader Haffar, Chairman and CEO of KPMG Lower Gulf.
The government’s comprehensive diversification program for a knowledge-driven economy backed by technology and sustainable development has pivoted the nation forward. This year’s edition of the CEO Outlook survey shows that the Emirates is set for unprecedented growth, powered by a hybrid workforce and enhanced digital capabilities as a result of improved IT infrastructure, a focus on cybersecurity and diversified supply chains,” he added.
A majority of worldwide CEOs are expecting a recession in the next year with 86 percent expecting an economic downturn. In the Emirates, a meagre 24 percent are expecting a recession.
The UAE recently has recorded strongest growth in over a decade driven by a sharp increase in oil production and improvements in non-oil GDP.
According to the UAE Central Bank and International Monetary Fund in the UAE, the economy grew by 8.2 percent in the first quarter of this year projected to exceed five percent while inflation is expected to remain well below the global average.
The survey also revealed that a vast majority (96 percent) of UAE CEOs reported having an aggressive digital strategy in place, which was much higher than the global figure of 72 percent.
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