Middle East CEOS’ economic confidence grows: Survey
The 2024 CEO Insights Study by Arthur D. Little has revealed strong economic confidence among business leaders in the Middle East. A significant 61% of CEOS in the region are now optimistic about economic growth in the next three to five years, a noticeable jump from just 13% last year.
With the world’s economy showing ups and downs, 37% of Middle East CEOS still see a steady future, reflecting their trust in the region's economic strength. Only a small 2% expect a decline, which suggests a shared belief that the Middle East is on the rise after overcoming recent obstacles.
The commitment to integrating AI across business operations is seen as crucial to growth and echoes globally, with 54% of Middle East CEOS expressing a strategic vision towards a holistic, company-wide AI deployment while 96% of global CEOS have already deployed AI in some form. While regionally 31% confirm the implementation of AI strategies across several departments, an ambitious 13% have already realised a compelling, enterprise-wide AI strategy.
Importantly, CEOS understand that to get the best from AI, they need to focus on their people.
Around 59% say they have either a strong or very strong need to reskill their workforces to meet changing requirements, up from 13% in 2023. This trend is particularly pressing in sectors such as manufacturing, with a 63% increase in the need to reskill, and financial services (+55%).
In a statement, Thomas Kuruvilla, Managing Partner at Arthur D. Little Middle East, said, “In the current times of business and geopolitical shifts, it is inspiring to witness the optimism among the Middle East's CEOS for what lies ahead. Our study reveals that despite acknowledging the continuing unpredictability, these leaders are confident that with resilient business models, strategic clarity, the embrace of AI, and a focus on upskilling their teams, their companies and markets are poised for enduring growth and will actively contribute to the region's prosperous future.”
Kuruvilla said that AI is more than a buzzword in the Middle East; it is a strategic imperative that's receiving boardroom attention. “Our CEOS are not just adopting AI but are strategically deploying it to unlock a new frontier of possibilities.”
Critical to this outlook is the approach towards external growth factors. Globally, technology innovation remains the key growth driver, with raw material prices becoming a surging concern. Yet, in the Middle East, the angst surrounding raw material prices and supply chain stability shows a notable decrease, likely attributed to the region's rich energy reserves, particularly oil and gas.
Furthermore, the CEOS' strategic lens is sharply focused on the rapidly growing fintech sector, signifying a shift towards embracing digital financial services as a cornerstone for future economic expansion in the region.
Kuruvilla added, “The Middle East region is uniquely positioned with technological growth and abundant energy resources, which our CEOS are leveraging to redefine growth models. The emphasis on fintech is not just about financial transactions but about catalyzing a tech-savvy economic ecosystem.”
61% of CEOS in the Middle East are now optimistic about economic growth in the next three to five years, a noticeable jump from just 13% last year