More than two-thirds of chief executives in the UAE are expecting a “stable” or “positive” global economic outlook for the next three to five years, despite current challenges, a survey has shown.
The findings were part of the 2023 CEO Insights study, carried out by consultants Arthur D Little, which includes responses from nearly 250 global chief executives.
Despite the energy crisis, global business leaders are prioritising innovation as the key driver of future growth, the report said.
However, executives in the Gulf region will be placing less emphasis on diversification and disruptive offerings and plan to instead shift their focus towards attracting new client segments, it added.
“In the Middle East, we see good examples of an industry’s moves to improve both efficiency and innovation in the travel and transportation industry,” Thomas Kuruvilla, managing partner at Arthur D Little Middle East, said on Tuesday.
“The Covid crisis pushed airlines and airports into large-scale efficiency programmes to achieve major cost reductions, impacting thousands of jobs. However, at the same time, these companies are forming new partnerships to offer new services to passengers,” said Mr Kuruvilla.
The UAE’s economy continues to recover from the coronavirus pandemic with higher oil prices and government initiatives to support diversification.
The country's economy, the second largest in the Arab world, is estimated to have grown by 7.6 per cent last year, the highest in 11 years, after expanding by 3.9 per cent in 2021, the UAE Central Bank said.
It is forecast to grow 3.9 per cent this year, while non-oil sector expansion is estimated at 4.2 per cent and oil GDP is projected at 3 per cent, the Central Bank said.
More than a quarter (26 per cent) of the respondents worldwide listed technology innovation as the most critical factor to growth, well ahead of raw materials and energy prices (11 per cent), the survey found.
While a growing number of chief executives in the Middle East (7 per cent) are starting to prioritise environmental and climate change issues as a factor in future growth, their view remains closely aligned with that of their global counterparts (10 per cent), the report said.
Business leaders in Africa (15 per cent), Asia (14 per cent), and the Middle East and Africa/South America (13 per cent) consider cyber risk as a pressing concern, placing them ahead of their counterparts in Europe and North America.
Meanwhile, top executives in the Middle East region believe that the most crucial factor in driving economic growth is technology innovation, with 29 per cent prioritising it, compared with the global average of 26 per cent, the report said.
“Despite current challenges and many dark macroeconomic previsions for 2023, most CEOs we spoke to are optimistic for the future,” said Francesco Marsella, managing partner, and global practice leader, strategy and organisation, at Arthur D Little.
“They see opportunity in adversity, looking beyond the current crisis to embrace a more positive future for their companies and wider society.”
The report said that there will be a “moderate” need for employee reskilling in the GCC for sectors such as telecom, travel and transportation and financial services.
But, healthcare (25 per cent), manufacturing (33 per cent) and energy and utilities (33 per cent) are experiencing the highest volume of reskilling initiatives in the workplace, it added.
