Latest news with #28thAnnualCEOSurvey
The National
27-02-2025
- Business
- The National
Regional CEOs confident but urged to adapt to AI and industry shifts
Middle East business leaders are among the most confident worldwide of growth this year, with 90 per cent of GCC chief executives expecting revenue increases, and 61 per cent planning to expand their workforce. However, chief executives also recognise the urgent need to reinvent their businesses amid the powerful wave of AI-led transformation, the need for climate action and the blurring of industry lines in the search for new domains of growth. The threat of cyber risks also remains a key concern, with 40 per cent of industry leaders identifying it as a top threat. These are among the key findings from PwC's 28th Annual CEO Survey of global and regional business leaders, which had responses from 4,700 CEOs around the world, including a record of almost 300 from across 11 countries in the Middle East. The findings were revealed alongside a roundtable of top regional chief executives, hosted by PwC Middle East. Elda Choucair, chief executive of Omnicom Media Group, Naim Yazbeck, general manager of Microsoft UAE, and Rola Abu Manneh, chief executive of Standard Chartered Bank UAE, provided broader insights while addressing the survey findings. Innovation and agility are driving the agendas for business leaders in the year ahead. Naim Yazbeck described the rate of digital transformation as unprecedented. 'At the pace is AI moving, there are bound to be surprises that may change our course of direction. Disruption can come out of the blue,' he said. The survey found a higher rate of AI adoption among Middle East CEOs than their peers globally, leading to improved time efficiencies, profitability and revenue, in addition to a more tech-savvy workforce. A notable 88 per cent of CEOs in the GCC adopted GenAI in the past 12 months, with 36 per cent highlighting job creation through GenAI - more than double the global average (17 per cent). And for those GCC business leaders who have adopted GenAI, 68 per cent acknowledged improved efficiencies in their own time at work, and that of employees (63 per cent). Looking ahead, survey figures revealed 70 per cent of GCC chief executives believe GenAI will increase profitability within 12 months, compared with 49 per cent globally. 'We're lucky to be in a region where AI is top priority - not just for CEOs, but also for country leaders,' said Mr Yazbeck. 'I don't think, globally, there are as many leaders as committed to leveraging the opportunity.' The survey data has also revealed that over the next three years 91 per cent of CEOs in the region plan to embed AI and GenAI into technology platforms, 86 per cent into business processes and workflows, 80 per cent into workforce and skills strategies, and 79 per cent into new products/services development. Rola Abu Manneh emphasised that AI and digital transformation are at the top of mind for every CEO in the banking sector and highlighted the role of the Standard Chartered AI Council in driving innovation. She said: 'We're investing a lot in AI because of evolving customer requirements and fintech disruptors. If we don't reinvent ourselves, we will not survive as banks. The traditional banking model is no longer there.' She added: 'Reskilling is very important. As an organisation, you will be more nimble, more agile and more efficient.' Elda Choucair, of Omnicom Media Group, said: 'The AI revolution in advertising started at least five years ago. It's been years since we moved from relying solely on human intelligence and capability to build, plan and negotiate. The pace of change is not going to stop. "The name of the game now is the acceleration part, how fast we can upskill and adopt the new technologies that are continuously disrupting what we already have. This comes with a lot of investment into educating oneself.' With 34 per cent of GCC chief executives saying skills shortages were a major concern, Mr Yazbeck touched on skillset challenges. He said: 'AI has moved at an unprecedented pace, unlike any technology before it. Especially in this region, everyone wants to lead on AI. The skill set to support this momentum will need time.' He continued: 'There should be a balance between ambition and what's possible. Upskilling programmes are going to be key for those who want to be leaders in this new era of AI. It will not replace human beings, but people with AI skills will replace those without AI skills.' Many CEOs in the survey spoke of anticipated regulatory changes - such as in technology and climate - as critical external factors influencing the economic viability of businesses over the next 10 years. Mr Yazbeck identified that responsible AI governance is a big challenge, emphasizing the importance of ensuring its enforcement. 'How much countries, governments and the private sector, come together to ensure there's governance around responsible AI is going to be key,' he said. Ms Choucair also touched upon risk, questioning whether regulation is keeping pace with rapid advancements. 'What does regulation look like? Do we have the legal setup to think about these things? Do all the people who do procurement and legal and finance understand AI's impact on our business? Upskilling needs to happen so that everybody can understand the dynamics emerging now,' she said. According to the survey, 71 per cent of GCC CEOs are optimistic about economic growth in their territories - ahead of their global peers. Ms Abu Manneh echoed this. 'As a manager, responsible for eight territories, I see the countries in the region driving growth,' she said. 'We're confident. There is that element of geopolitical risk, but we've always had geopolitics, and you learn to navigate and mitigate the risks.' She also spoke about the importance of the region as a hub for innovation and growth: 'If you look at the regional governments, the strategy, investments in AI technology, as well as in climate change, this is where we mirror the government's vision and align our products, services and our strategy,' she said. Survey figures also indicated businesses in the region addressing the climate crisis to gain a strategic advantage - nearly 80 per cent of GCC business leaders said they had initiated climate-friendly investments in the past five years, signalling a positive regional momentum towards sustainability. Both Standard Chartered and Microsoft executives spoke of company sustainability efforts. Mr Yazbeck explained how technology was helping to push sustainable solutions, such as clean energy, with the region stating clear objectives for renewables. Ms Abu Manneh said: 'It's a journey. It needs everybody to work together, all countries because the financing gap is huge. Sustainability should be part of your organization's DNA. This is also helping to attract talent, as people want to work in a place with a sense of purpose.' Ms Choucair said: 'There's a huge weight on big companies to lead the way, there's a cost aspect, and long-term planning - a lot to come into play in order to deliver on all these objectives.' Last year, almost half the Middle East CEOs expressed concerns about their organisation's economic viability over the next 10 years if they failed to evolve. This year that figure has risen to 60 per cent in the Middle East versus 42 per cent globally, making reinvention an urgent imperative. Partnerships have also been highlighted as critical by chief executives in the survey, as businesses look towards new sources of revenue growth. Nearly half of regional CEOs PwC surveyed were already competing in new industries and sectors, while 72 per cent expected to do a deal outside of their current sector within three years. So how does a company balance the need for reinvention while maintaining operational stability? 'For us, reinvention and operational excellence is one and the same,' Ms Choucair said. 'Your operation has to be reinvented so we become more efficient. It's part of the whole cycle of change and technological advancement - the combination, or the integration between technology and human is really at the heart of what we are experiencing right now.' Ms Choucair emphasised the importance of 'collaboration' and 'striking partnerships that allow you to move in and out of your industry. Human nature is to resist change – but if you don't embrace it, you become obsolete'. Replying to this, Mr Yazbeck added: 'Innovation is going to come through collaboration. Not a single company today can keep on innovating forever.' He continued: 'Every industry is going to be a tech-driven industry and the name of the game, other than collaboration, is going to be who will win the skill set war. Companies and countries who are able to attract key skills are going to be ahead of the curve. Some countries have that partnership culture in their DNA - the UAE is built on partnerships.' Ms Abu Manneh agreed and concluded: 'If we don't move and move fast - there's competition from outside. Expectations have changed, and if we don't change as well, we'll just be left behind.' This page was produced by The National in partnership with PwC
Arabian Business
24-02-2025
- Business
- Arabian Business
Non-oil sector to be the region's main engine of economic growth
In its February edition of Middle East Economy Watch, auditing and consulting firm PricewaterhouseCoopers (PwC) has highlighted the region's robust non-oil sector as a driver of sustained growth, as well as the renewed emphasis on fiscal discipline, particularly in Saudi Arabia, where spending is being re-prioritised toward critical investments. The above developments become even more significant as OPEC+ has extended production cuts into 2026, limiting oil supply growth amid weaker global demand. The report also touched upon the introduction of corporate tax reforms in the region to align with OECD GloBE rules, underscoring their broader revenue diversification efforts, as well as business leaders' confidence about the region's economic outlook. The report emphasised that the momentum in the non-oil industries continues to offset weakness in the oil sector, and called it the 'main engine of regional economic growth'. It said Abu Dhabi's non-oil sector recorded a 6.6 per cent year-on-year growth in Q3 2024, led by financial services and transportation. Other GCC economies are projected to see steady non-oil GDP growth, ranging from 2.1 per cent in Qatar to 4.5 per cent in the UAE in 2025. PwC expected Brent crude to average in the low $70s per barrel in 2025, down from around $80 in 2024. OPEC+ has slowed the tapering of voluntary production cuts, extending them into 2026. This move aims to stabilise oil prices amid weaker-than-expected demand, particularly from China. However, global uncertainties – including US energy policies – add to market volatility. Richard Boxshall, Partner and Chief Economist, PwC Middle East, commented: 'OPEC+ has been remarkably effective at coordinating oil production over the past decade, shaping both global energy markets and the Middle East's economic trajectory. 'However, there remains uncertainty over how OPEC+ will respond to evolving factors, including the Trump presidency, geopolitical developments in the region, and shifting dynamics in the oil sector. These factors intensify the need and urgency for continued non-oil sector expansion and fiscal adaptability across GCC economies.' On Saudi Arabia, the report said that the country remains committed to its Vision 2030 transformation, with over $5 trillion in active projects. 'The government aims to maximise the impact of public spending through a value-based approach, while maintaining strict fiscal discipline. Its primary focus is on investing in ambitious infrastructure, tourism, and renewable energy projects,' it added. This commitment of Saudi Arabia is exemplified by major developments in Riyadh, such as the Riyadh Metro, New Murabba, and Diriyah Gate, as well as in other regions. With more than 90 per cent of GCC CEOs surveyed expecting revenue growth in 2025 (as per PwC's 28th Annual CEO Survey), Stephen Anderson, Partner, Middle East Strategy Leader, added: 'Despite global uncertainties, the Middle East continues to demonstrate strong economic growth and resilience. 'Business leaders remain confident in the region's economic prospects, with non-oil sector expansion, fiscal policy reforms, and strategic investments positioning GCC economies for sustained and diversified prosperity in 2025.' The report added that the continued commitment of GCC governments to invest in the long-term prosperity of the region's economies, supports a cautiously optimistic outlook for 2025.
Zawya
28-01-2025
- Business
- Zawya
90% of GCC including Qatar CEOs confident of revenue growth in 2025
Doha, Qatar: CEOs in the Middle East and Qatar are among the most confident globally about revenue growth in 2025, as revealed in PwC's 28th Annual CEO Survey. Yet the survey also finds that regional chief executives are aware of the huge wave of disruptive change, primarily driven by AI, climate challenges and an intensifying competition over new domains of growth as industry lines blur. In summary, the survey reveals that our region's CEOs are striking a difficult balance - capturing the significant market opportunities today while also reinventing their businesses for tomorrow. PwC's annual survey of CEOs globally and across the Middle East and Qatar reflects the collective voice of business leaders - offering valuable insights into the opportunities they see, the challenges they face and the path forward. This year the survey captured more Middle East and Qatar responses than ever before, with almost 300 chief executives sharing their views. The regional and local findings reveal strong confidence amongst CEOs in their companies' revenue growth, with those in the GCC particularly optimistic about revenue growth in 2025 (at 90%). 61% of GCC CEOs also expect to increase headcount this year, compared to just 42% of their global peers, and up from 55% in 2024. However, one third (34%) cited skills shortages as a major concern. Commenting on the findings, Hani Ashkar, PwC Middle East Senior Partner, said: 'The Middle East's optimism reflects a remarkable ability to adapt and innovate in the face of global challenges. CEOs in the region are adopting bold strategies to drive growth and competitiveness, advance sustainability and integrate AI into their businesses." "These efforts are reinforcing the region's role as a dynamic hub for business and investment, ensuring long-term value creation for stakeholders and communities alike.' Bassam Hajhamad, Qatar Country Senior Partner and Consulting Lead, PwC Middle East commented: 'Qatar is transitioning to a knowledge-based economy, where businesses are embracing AI, innovation, and sustainability to drive long-term growth. NDS-3 has been pivotal in guiding the way forward for CEOs and enabling businesses to align with national priorities and make a larger impact on the economy.' © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
27-01-2025
- Business
- Zawya
87% of Omani CEOs confident of revenue growth in 2025: Survey
Muscat – CEOs in the GCC countries, including Oman, are among the most confident globally about revenue growth in 2025, as revealed in PwC's 28th Annual CEO Survey. However, the survey also finds that regional chief executives are acutely aware of the enormous wave of disruptive change, primarily driven by AI, climate challenges, and intensifying competition over new areas of growth as industry boundaries blur. The survey reveals that the region's CEOs are striking a difficult balance – seizing significant market opportunities today while also reinventing their businesses for tomorrow. PwC's annual survey of CEOs globally and across the Middle East reflects the collective voice of business leaders, offering valuable insights into the opportunities they see, the challenges they face, and the path forward. The survey revealed that 87% of CEOs in Oman are confident of revenue growth in 2025. Regional findings show strong confidence among CEOs in their companies' revenue growth, with 90% of GCC CEOs particularly optimistic about revenue growth in 2025. Around 69% of Omani CEOs expect to increase headcount within the next 12 months. This is higher than the GCC average, as 61% of GCC CEOs expect to increase headcount this year, compared to just 42% of their global peers, and up from 55% in 2024. However, one-third of GCC CEOs (34%) cited skills shortages as a major concern. Hani Ashkar, PwC Middle East Senior Partner, said, 'The Middle East's optimism reflects a remarkable ability to adapt and innovate in the face of global challenges. CEOs in the region are adopting bold strategies to drive growth and competitiveness, advance sustainability, and integrate AI into their businesses. These efforts are reinforcing the region's role as a dynamic hub for business and investment, ensuring long-term value creation for stakeholders and communities alike.' For GCC CEOs, the urgency to reinvent is clear. A striking 60% of regional CEOs now believe their businesses will not survive 'within the next 10 years or less' without significant adaptation – a notable increase from last year, when fewer than half expressed similar concerns. CEOs in the Middle East recognise that traditional business models are increasingly unsustainable in the face of transformative shifts, primarily driven by AI, the climate crisis, and industry convergence. A notable 88% of GCC CEOs have adopted GenAI in the last 12 months, exceeding global averages and reflecting greater confidence in the technology's potential. Seventy per cent of GCC CEOs also believe that GenAI will increase profitability in 2025. In Oman, 87% of CEOs have adopted AI in the last 12 months, according to the survey findings. On climate, 79% of regional CEOs have initiated climate-friendly investments in the last five years. CEOs also recognise that there is fierce competition over new areas of growth as industry boundaries blur. This is highlighted by 43% of regional CEOs indicating that they are already competing in new sectors or industries, 53% have targeted a new customer base within the last five years, and 72% expect to do a deal outside their industry or sector in the next three years. Stephen Anderson, Partner and Middle East Strategy Leader at PwC Middle East, said, 'Middle East CEOs are more confident than their global peers, capturing significant market opportunities in our region, while also proactively reinventing their businesses. Our confident CEOs are embracing AI, adapting their businesses for the opportunities and threats associated with climate change, and fiercely competing outside their industry to capture new value domains.' Alongside growth and reinvention, regional CEOs remain vigilant over the increasing threat landscape. GCC CEOs cited cybersecurity as their main concern, closely followed by geopolitical risk, macroeconomic volatility, and technological disruption. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
