CEOs in KSA express cautious optimism over reforms

In a survey conducted by global research and consultancy firm Oxford Business Group, more than two-thirds of executive heads in Saudi Arabia have expressed a positive outlook for the next 12 months, despite the significant changes taking place in the Kingdom’s economy.

The survey — Index of Business: Chief Executive Officer of Saudi Arabia Survey — presented a comprehensive series of questions to executives in high-level industry sectors.

About 70 percent of the CEOs surveyed said they expect business conditions to be positive over the next 12 months, while 24 percent thought the outlook was negative.

Issues such as high public utilities tariffs, rising expatriate labor costs and uncertainty about projects remain causes for concern.

In response to a separate question, 66 percent of the respondents said it was likely or very likely that they would invest in Saudi Arabia’s information, communication and real estate sectors.

Oliver Kornok, editorial director of Oxford Business Group in the Middle East, said the launch of the two programs — National Transformation Program 2020 and Vision 2030 — coupled with higher oil prices and a set of reforms have helped to strengthen the business direction in the Kingdom.

“Times are changing for the economy of the Kingdom, but it is increasingly clear that the private sector, which is expected to play a bigger role in the economy in the future, remains optimistic,” said Kornok.