Most CEOs in the UAE remain more bullish than their counterparts across the globe in economic growth prospects and expect to increase headcount over the next three years, a survey has revealed.
While globally 72 per cent of CEOs are confident in economic growth prospects, 96 per cent of chief executives in the UAE are confident in their industry’s growth compared to 79 per cent in the Middle East, KPMG UAE CEO Outlook Report 2024 said..
UAE CEOs have backed their businesses to prosper in the face of declining confidence in the global economy, the report said. “UAE CEOs were among the most confident in the region, with 96 per cent confident about their industry’s growth compared to 79 per cent in the Middle East.” The report which surveyed 1,325 CEOs worldwide, also found that 72 per cent of CEOs are confident in economic growth prospects.
The UAE’s stable economy, supportive business environment, and the government’s focus on innovation and sustainability have all contributed to long-term business prosperity. Almost half (48 per cent) of CEOs in the UAE were found to have a high mergers and acquisitions (M&A) appetite, compared to only 28 per cent in the Middle East.
“AI adoption and ESG investments continue to remain priorities for CEOs in the UAE, highlighting the importance of these investments in shaping future growth. Equally, Emiratization is not only promoting a more inclusive economy but is also enhancing the nation’s long-term stability and growth prospects,” says Emilio Pera, senior partner, and CEO of KPMG Lower Gulf. “The UAE is at the forefront of regional economic and technological transformation, driven by its commitment to innovation, sustainability, and a diversified economy. Our CEO Outlook Report reveals that local business leaders are significantly more confident about growth prospects than their global counterparts,” said Pera.
Recent similar findings from PwC’s 27th CEO survey indicate that business leaders in the UAE are optimistic about the nation’s economic growth, as it remains an exceptionally attractive destination for investors. According to this study, 82 per cent of UAE CEOs are confident that the UAE’s economy will improve in 2024, significantly higher than the global average of 44 per cent. “This is partly driven by the country’s diversification strategies as it continues to be less reliant on oil and more focused on knowledge-based industries.” PwC said.
The KPMG report argued that the increased optimism of CEOs across the UAE is mainly driven by trust in the leadership and government policies, “The nation’s positive economic outlook is supported by its thriving tourism sector and continued economic expansion, ranking UAE highly in terms of safety and security, UAE also went up three places to secure 7th place globally in the World Competitiveness Report,” said the report.
“As the UAE continues to strengthen its role as a regional leader in technology, sustainability, and economic diversification, with GDP growth projected to reach 4.1 per cent by 2025, 100 per cent UAE CEOs expect to increase headcount over the next three years compared to 92 per cent globally reflecting the fast-growing economy and need for increased hiring in the workforce,” said the report.
A continued emphasis on Emiratisation is expected to drive the private sector forward with 68 per cent believing that investment in skills development and lifelong learning is essential to securing future talent pipelines.
Seventy six per cent of CEOs both globally and in UAE anticipate AI will not fundamentally reduce the number of jobs within their organizations over the next three years with 52 per cent of UAE CEOs considering generative AI a top investment priority in 2024, the KPMG study said.
Some 56 per cent of UAE CEOs expect returns on ESG investments within 3 to 5 years, compared to 55 per cent globally, reflecting the UAE CEOs alignment with the country’s sustainability agenda and global trends in driving corporate strategies. However, most global and local CEOs anticipate they will be required to balance centralized and devolved strategies in response to geopolitical uncertainties and climate change.