Latest news with #Strategy&MiddleEast
Zawya
06-05-2025
- Health
- Zawya
Strategy& Middle East: GCC healthcare sector could save US$2.5bln by investing in workforce wellbeing
Prioritizing healthcare workforce wellbeing results in 17% reduction in absenteeism, 11% decrease in staff turnover, 25% increase in productivity Dubai, UAE: New research by Strategy& Middle East, part of the PwC network, estimates that investing in workforce wellbeing could generate savings of as much as US$2.5 billion in the GCC healthcare sector. The findings highlight the unique set of challenges affecting healthcare workers' physical and mental wellbeing and illustrates how investment in workforce wellbeing could have a significant impact. Long hours, high-intensity work environments, and physically demanding tasks contribute to chronic fatigue and other health problems. According to reports, almost 50% of healthcare professionals worldwide are affected by burnout, while nearly 48% globally suffer from musculoskeletal issues each year. With the GCC healthcare sector workforce comprising more than 800,000 workers in 2025, investment in strengthening workplace wellbeing has the potential to create significant impact across the sector. The human cost Recent studies indicate that healthcare burnout contributes to a fourfold decrease in job satisfaction, while doctors experiencing burnout are 2.2 times more likely to have made a medical error in the past three months. Additionally, the emotional toll of patient suffering, navigating difficult diagnoses, and making life-or-death decisions take an emotional toll. As these challenges mount, healthcare systems become increasingly stretched, with workforce shortages compounding existing pressures. 'With the GCC healthcare sector undergoing rapid transformation and a sizable workforce already employed in the industry, prioritizing workforce wellbeing is more critical than ever. Beyond benefiting employees, efforts in this area could deliver clear financial gains and drive broader improvements across the sector, enhancing overall system performance,' said Irfan Merali, Partner at Strategy& Middle East. The business impact The impact on personal wellbeing also extends to financial and systemic repercussions, with poor wellbeing driving absenteeism, staff turnover, and declining job satisfaction, creating a vicious cycle that harms both healthcare workers and patients. Research shows that prioritizing workforce wellbeing leads to an increase of up to 25% in productivity, a 17% reduction in absenteeism and an 11% decrease in staff turnover. This also includes an overall impact on the sector including higher job satisfaction, fewer medical errors, and enhanced patient outcomes – and a system-wide potential saving of US$ 2.5 billion in the GCC. Adopting a pro-active approach The research suggests healthcare providers adopt a structured approach that combines preventative and intervention strategies to help drive improvements: Primary interventions, which aim to eliminate or mitigate workplace stressors at their source, could help to foster long-term improvements over temporary morale boosts. By assessing the work environment, organizational practices, and job roles, healthcare institutions can tackle issues such as excessive workloads, rigid shifts, and role ambiguity. Secondary interventions, focus on empowering healthcare workers with the skills and strategies to cope with stressors that cannot be avoided or eliminated, such as high patient volumes, ethical dilemmas, and emotional strain. This can be achieved through resilience training, stress management workshops, mindfulness programs, and peer support networks to help employees navigate high-pressure situations effectively. Tertiary interventions, designed to assist healthcare professionals already experiencing significant stress-related symptoms can ensure they receive the support needed to recover and reintegrate effectively. Access to counseling, physiotherapy and employee assistance programs can help professionals recover, reduce the risk of physical strain and chronic musculoskeletal conditions, as well as return to optimal functioning. Given that healthcare organizations already provide similar services to patients, there is an opportunity to extend these resources to employees in a cost-effective and sustainable manner. 'A resilient healthcare system depends on healthy, supported professionals who can meet evolving demands. Investing in workforce wellbeing isn't just the right thing to do; it is essential to create a resilient system that enables better outcomes for all. By prioritizing their wellbeing, the sector ensures long-term quality, efficiency, and sustainability of the entire healthcare system," said Dr. Christelle Abou Nader, Manager at Strategy& Middle East. About Strategy& Strategy& is a global strategy consulting business uniquely positioned to help deliver your best future: one that is built on differentiation from the inside out and tailored exactly to you. As part of PwC, we're building the winning systems that are at the heart of growth every day. We combine our powerful foresight with this tangible know-how, technology, and scale to help you create a better, more transformative strategy from day one. As the only at-scale strategy business that's part of a global professional services network, we embed our strategy capabilities with frontline teams across PwC to show you where you need to go, the choices you'll need to make to get there, and how to get it right. The result is an authentic strategy process powerful enough to capture possibility while pragmatic enough to ensure effective delivery. It's the strategy that gets an organization through today's changes and drives results that redefine tomorrow. It's the strategy that turns vision into reality. It's strategy, made real.
Mid East Info
25-04-2025
- Business
- Mid East Info
US$22 billion on the table – Are GCC utilities ready to seize the opportunity? - Middle East Business News and Information
Energy transition and rising demand driving urgent need for cost reform New report outlines pathway to unlock billions in long-term value Dubai, UAE, April, 2025: The GCC utilities sector has the potential to reduce operational costs by 15% to 30%, which could generate up to US$22 billion in savings over the next decade. This can be achieved through a mix of short-term tactical actions and long-term changes to how utilities operate. The analysis was part of a new report by Strategy& Middle East, part of the PwC network, which outlines how utilities in GCC could break free from outdated assumptions and adopt leading practices to enable effective transformation. GCC countries have put in place ambitious national emissions reduction programs and other energy-related programs to meet net-zero targets. For instance, electricity demand in Saudi Arabia alone is expected to surge 58% from 330 terawatt hours (TWh) in 2024 to more than 520 TWh by 2030, with the cost of the Kingdom's energy transition expected to reach $235 billion by 2030. Some countries across the GCC are setting targets via regulatory frameworks as part of efforts to cap costs, with both Saudi and the United Arab Emirates embedding efficiency mandates for utilities. In Abu Dhabi, the sector has been tasked with achieving an efficiency improvement of 0.5% annually through 2026. Utilities sector must balance between growth and efficiency: With GCC utilities expected to play a major role in implementing these programs, they face significant pressure to reshape themselves to deliver. Increasingly, they have been tasked with implementing advanced technologies such as smart grids, integrating renewable energy at unprecedented scale, and implementing wide-ranging digital transformation programs, all while continuously enhancing reliability and efficiency; key elements for achieving national sustainability goals. 'As energy systems evolve and electricity demand surges, GCC utilities must redefine performance to optimize costs,' said Anthony Yammine, Partner at Strategy& Middle East. 'Through a set of targeted actions, the sector can unlock up to US$22 billion in operational savings over the next decade. This can be achieved without sacrificing service quality, and embracing smarter, more agile ways of operating aligned with national transformation goals.' Despite this, the report finds that three common misconceptions surround utility operating costs: first, that costs are fixed and unaffected by output or change initiatives; second, that reallocating resources degrades service quality and network performance; and third, that unique conditions – such as network design, climate, and customer distribution – prevent the adoption of practices successfully used elsewhere. These misconceptions are hindering transformation and limiting progress on cost optimization. Globally, leading practices suggest that cost efficiency can be a cornerstone of utility regulation, with various models designed to balance financial sustainability with operational performance. Such models – including a revenue cap, performance-based regulation, and the setting of tariffs based on the performance of top, or average, utilities in the market – push utilities to improve efficiency while maintaining service quality and profitability. Statistics show service quality can improve even as spending is cut, with operational expenditure (OpEx) among European utility providers falling by 16-17% since 2005, during which service interruptions decreased by 33%. Opportunities for transformation: To rise to these challenges and adjust to new regulatory requirements, utilities must eliminate inefficiencies and reallocate resources to strategic investments. These investments include spending to upgrade their infrastructure, enhance digitization, and reskilling the workforce for the future. Additionally, Broader adoption of automation, AI-driven grid management, predictive maintenance, and digitalized customer services can also reduce operational expenditure. The report identifies nine key areas for optimizing utility operations, each with clear cost-saving potential. Among them, risk-based maintenance, procurement excellence, and support services optimization could deliver savings of up to 20%, 10%, and 15% respectively. 'Utilities in the GCC have a clear opportunity to optimize operations by reengineering workflows, adopting proven practices from more mature markets, and integrate cutting-edge technologies that boost productivity. A strategic allocation of resources from legacy operations to smart grid technologies – alongside a focus on cybersecurity and workforce upskilling – can help the sector support growth priorities, close critical gaps and build long-term resilience,' said Aditya Harneja, Principal at Strategy& Middle East. In the shorter term, quick wins can bring about substantial savings without requiring extensive buy-in from multiple stakeholders, with one regional utility provider in the GCC region achieving 8-15% OpEx savings in just three years through tactical reforms including fine-tuning expenditure capitalization policies, optimizing vehicle policies and fleet size, and adjusting overtime policies. The success of quick wins paves the way for longer-term initiatives involving more extensive organizational restructuring, process improvement, or digital transformation, with such longer-term, more strategic moves likely to capture an additional 7-15% of the potential gains from operating expenditure optimization. The way forward: The report notes that in today's environment, optimizing operational expenditures is both a necessity and an opportunity. For utilities, leadership in executing these strategies will determine whether they can meet today's challenges and thrive as key enablers of their national economic and sustainability goals. 'Optimizing operational spending requires a structured approach that balances quick wins with longer-term transformation. Tactical actions can create immediate impact and build momentum, while strong leadership and program design are key to driving sustained performance and long-term value,' concluded Vlad Gheorghe, Principal at Strategy& Middle East.
Arabian Business
25-04-2025
- Business
- Arabian Business
How GCC utility firms can create $22bn in savings
The GCC utilities sector has the potential to reduce operational costs by 15 per cent to 30 per cent, which could generate up to $22bn in savings over the next decade. This can be achieved through a mix of short-term tactical actions and long-term changes to how utilities operate. The analysis was part of a new report by Strategy& Middle East, part of the PwC network, which outlines how utilities in GCC could break free from outdated assumptions and adopt leading practices to enable effective transformation. GCC utility companies GCC countries have put in place ambitious national emissions reduction programs and other energy-related programs to meet net-zero targets. For instance, electricity demand in Saudi Arabia alone is expected to surge 58 per cent from 330 terawatt hours (TWh) in 2024 to more than 520 TWh by 2030, with the cost of the Kingdom's energy transition expected to reach $235bn by 2030. Some countries across the GCC are setting targets via regulatory frameworks as part of efforts to cap costs, with both Saudi and the UAE embedding efficiency mandates for utilities. In Abu Dhabi, the sector has been tasked with achieving an efficiency improvement of 0.5 per cent annually through 2026. With GCC utilities expected to play a major role in implementing these programs, they face significant pressure to reshape themselves to deliver. Increasingly, they have been tasked with implementing advanced technologies such as smart grids, integrating renewable energy at unprecedented scale, and implementing wide-ranging digital transformation programs, all while continuously enhancing reliability and efficiency; key elements for achieving national sustainability goals. Anthony Yammine, Partner at Strategy& Middle East, said: 'As energy systems evolve and electricity demand surges, GCC utilities must redefine performance to optimise costs. Through a set of targeted actions, the sector can unlock up to $22bn in operational savings over the next decade. 'This can be achieved without sacrificing service quality, and embracing smarter, more agile ways of operating aligned with national transformation goals.' Despite this, the report finds that three common misconceptions surround utility operating costs: First, that costs are fixed and unaffected by output or change initiatives Second, that reallocating resources degrades service quality and network performance Third, that unique conditions, such as network design, climate, and customer distribution, prevent the adoption of practices successfully used elsewhere These misconceptions are hindering transformation and limiting progress on cost optimisation. Globally, leading practices suggest that cost efficiency can be a cornerstone of utility regulation, with various models designed to balance financial sustainability with operational performance. Such models, including a revenue cap, performance-based regulation, and the setting of tariffs based on the performance of top, or average, utilities in the market, push utilities to improve efficiency while maintaining service quality and profitability. Statistics show service quality can improve even as spending is cut, with operational expenditure (OpEx) among European utility providers falling by 16-17 per cent since 2005, during which service interruptions decreased by 33 per cent. To rise to these challenges and adjust to new regulatory requirements, utilities must eliminate inefficiencies and reallocate resources to strategic investments. These investments include spending to upgrade their infrastructure, enhance digitization, and reskilling the workforce for the future. Additionally, Broader adoption of automation, AI-driven grid management, predictive maintenance, and digitalised customer services can also reduce operational expenditure. The report identifies nine key areas for optimising utility operations, each with clear cost-saving potential. Among them, risk-based maintenance, procurement excellence, and support services optimisation could deliver savings of up to 20 per cent, 10 per cent, and 15 per cent respectively. Aditya Harneja, Principal at Strategy& Middle East, said: 'Utilities in the GCC have a clear opportunity to optimise operations by reengineering workflows, adopting proven practices from more mature markets, and integrate cutting-edge technologies that boost productivity. 'A strategic allocation of resources from legacy operations to smart grid technologies, alongside a focus on cybersecurity and workforce upskilling, can help the sector support growth priorities, close critical gaps and build long-term resilience'. In the shorter term, quick wins can bring about substantial savings without requiring extensive buy-in from multiple stakeholders, with one regional utility provider in the GCC region achieving 8-15 per cent OpEx savings in just three years through tactical reforms including fine-tuning expenditure capitalisation policies, optimising vehicle policies and fleet size, and adjusting overtime policies. The success of quick wins paves the way for longer-term initiatives involving more extensive organisational restructuring, process improvement, or digital transformation, with such longer-term, more strategic moves likely to capture an additional 7-15 per cent of the potential gains from operating expenditure optimisation. The report notes that in today's environment, optimising operational expenditures is both a necessity and an opportunity. For utilities, leadership in executing these strategies will determine whether they can meet today's challenges and thrive as key enablers of their national economic and sustainability goals. Vlad Gheorghe, Principal at Strategy& Middle East, said: 'Optimising operational spending requires a structured approach that balances quick wins with longer-term transformation. Tactical actions can create immediate impact and build momentum, while strong leadership and program design are key to driving sustained performance and long-term value'.
Trade Arabia
25-04-2025
- Business
- Trade Arabia
GCC utilities sector could net $22bn in savings through key reforms
The GCC utilities sector has the potential to reduce operational costs by 15% to 30%, which could generate up to $22 billion in savings over the next decade. This can be achieved through a mix of short-term tactical actions and long-term changes to how utilities operate, according to a new report by Strategy& Middle East, part of the PwC network. GCC countries have put in place ambitious national emissions reduction programs and other energy-related programs to meet net-zero targets. For instance, electricity demand in Saudi Arabia alone is expected to surge 58% from 330 terawatt hours (TWh) in 2024 to more than 520 TWh by 2030, with the cost of the Kingdom's energy transition expected to reach $235 billion by 2030, it stated. Some countries across the GCC are setting targets via regulatory frameworks as part of efforts to cap costs, with both Saudi and UAE embedding efficiency mandates for utilities, stated the report. The Strategy& Middle East report outlines how utilities in GCC could break free from outdated assumptions and adopt leading practices to enable effective transformation. In Abu Dhabi, the sector has been tasked with achieving an efficiency improvement of 0.5% annually through 2026. With GCC utilities expected to play a major role in implementing these programs, they face significant pressure to reshape themselves to deliver. Increasingly, they have been tasked with implementing advanced technologies such as smart grids, integrating renewable energy at unprecedented scale, and implementing wide-ranging digital transformation programs, all while continuously enhancing reliability and efficiency; key elements for achieving national sustainability goals, stated the report. "As energy systems evolve and electricity demand surges, GCC utilities must redefine performance to optimise costs," remarked Anthony Yammine, a Partner at Strategy& Middle East. "Through a set of targeted actions, the sector can unlock up to $22 billion in operational savings over the next decade. This can be achieved without sacrificing service quality, and embracing smarter, more agile ways of operating aligned with national transformation goals," he added. Despite this, the Strategy& Middle East report finds that three common misconceptions surround utility operating costs: first, that costs are fixed and unaffected by output or change initiatives; second, that reallocating resources degrades service quality and network performance; and third, that unique conditions - such as network design, climate, and customer distribution - prevent the adoption of practices successfully used elsewhere. These misconceptions are hindering transformation and limiting progress on cost optimization. Globally, leading practices suggest that cost efficiency can be a cornerstone of utility regulation, with various models designed to balance financial sustainability with operational performance. Such models – including a revenue cap, performance-based regulation, and the setting of tariffs based on the performance of top, or average, utilities in the market – push utilities to improve efficiency while maintaining service quality and profitability. Statistics show service quality can improve even as spending is cut, with operational expenditure (OpEx) among European utility providers falling by 16-17% since 2005, during which service interruptions decreased by 33%. Strategy& Middle East said to rise to these challenges and adjust to new regulatory requirements, utilities must eliminate inefficiencies and reallocate resources to strategic investments. These investments include spending to upgrade their infrastructure, enhance digitization, and reskilling the workforce for the future. Additionally, Broader adoption of automation, AI-driven grid management, predictive maintenance, and digitalized customer services can also reduce operational expenditure, it stated. The report identifies nine key areas for optimizing utility operations, each with clear cost-saving potential. Among them, risk-based maintenance, procurement excellence, and support services optimization could deliver savings of up to 20%, 10%, and 15% respectively. "Utilities in the GCC have a clear opportunity to optimize operations by reengineering workflows, adopting proven practices from more mature markets, and integrate cutting-edge technologies that boost productivity," remarked Aditya Harneja, Principal at Strategy& Middle East. "A strategic allocation of resources from legacy operations to smart grid technologies - alongside a focus on cybersecurity and workforce upskilling - can help the sector support growth priorities, close critical gaps and build long-term resilience," he added. In the shorter term, quick wins can bring about substantial savings without requiring extensive buy-in from multiple stakeholders, with one regional utility provider in the GCC region achieving 8-15% OpEx savings in just three years through tactical reforms including fine-tuning expenditure capitalization policies, optimizing vehicle policies and fleet size, and adjusting overtime policies. The success of quick wins paves the way for longer-term initiatives involving more extensive organizational restructuring, process improvement, or digital transformation, with such longer-term, more strategic moves likely to capture an additional 7-15% of the potential gains from operating expenditure optimization. The report notes that in today's environment, optimizing operational expenditures is both a necessity and an opportunity. For utilities, leadership in executing these strategies will determine whether they can meet today's challenges and thrive as key enablers of their national economic and sustainability goals. Vlad Gheorghe, Principal at Strategy& Middle East, said: "Optimizing operational spending requires a structured approach that balances quick wins with longer-term transformation."
Zawya
25-04-2025
- Business
- Zawya
$22bln on table - Are GCC utilities ready to seize the opportunity?
The GCC utilities sector has the potential to reduce operational costs by 15% to 30%, which could generate up to $22 billion in savings over the next decade. This can be achieved through a mix of short-term tactical actions and long-term changes to how utilities operate, according to a new report by Strategy& Middle East, part of the PwC network. GCC countries have put in place ambitious national emissions reduction programs and other energy-related programs to meet net-zero targets. For instance, electricity demand in Saudi Arabia alone is expected to surge 58% from 330 terawatt hours (TWh) in 2024 to more than 520 TWh by 2030, with the cost of the Kingdom's energy transition expected to reach $235 billion by 2030, it stated. Some countries across the GCC are setting targets via regulatory frameworks as part of efforts to cap costs, with both Saudi and UAE embedding efficiency mandates for utilities, stated the report. The Strategy& Middle East report outlines how utilities in GCC could break free from outdated assumptions and adopt leading practices to enable effective transformation. In Abu Dhabi, the sector has been tasked with achieving an efficiency improvement of 0.5% annually through 2026. With GCC utilities expected to play a major role in implementing these programs, they face significant pressure to reshape themselves to deliver. Increasingly, they have been tasked with implementing advanced technologies such as smart grids, integrating renewable energy at unprecedented scale, and implementing wide-ranging digital transformation programs, all while continuously enhancing reliability and efficiency; key elements for achieving national sustainability goals, stated the report. "As energy systems evolve and electricity demand surges, GCC utilities must redefine performance to optimise costs," remarked Anthony Yammine, a Partner at Strategy& Middle East. "Through a set of targeted actions, the sector can unlock up to $22 billion in operational savings over the next decade. This can be achieved without sacrificing service quality, and embracing smarter, more agile ways of operating aligned with national transformation goals," he added. Despite this, the Strategy& Middle East report finds that three common misconceptions surround utility operating costs: first, that costs are fixed and unaffected by output or change initiatives; second, that reallocating resources degrades service quality and network performance; and third, that unique conditions - such as network design, climate, and customer distribution - prevent the adoption of practices successfully used elsewhere. These misconceptions are hindering transformation and limiting progress on cost optimization. Globally, leading practices suggest that cost efficiency can be a cornerstone of utility regulation, with various models designed to balance financial sustainability with operational performance. Such models – including a revenue cap, performance-based regulation, and the setting of tariffs based on the performance of top, or average, utilities in the market – push utilities to improve efficiency while maintaining service quality and profitability. Statistics show service quality can improve even as spending is cut, with operational expenditure (OpEx) among European utility providers falling by 16-17% since 2005, during which service interruptions decreased by 33%. Strategy& Middle East said to rise to these challenges and adjust to new regulatory requirements, utilities must eliminate inefficiencies and reallocate resources to strategic investments. These investments include spending to upgrade their infrastructure, enhance digitization, and reskilling the workforce for the future. Additionally, Broader adoption of automation, AI-driven grid management, predictive maintenance, and digitalized customer services can also reduce operational expenditure, it stated. The report identifies nine key areas for optimizing utility operations, each with clear cost-saving potential. Among them, risk-based maintenance, procurement excellence, and support services optimization could deliver savings of up to 20%, 10%, and 15% respectively. "Utilities in the GCC have a clear opportunity to optimize operations by reengineering workflows, adopting proven practices from more mature markets, and integrate cutting-edge technologies that boost productivity," remarked Aditya Harneja, Principal at Strategy& Middle East. "A strategic allocation of resources from legacy operations to smart grid technologies - alongside a focus on cybersecurity and workforce upskilling - can help the sector support growth priorities, close critical gaps and build long-term resilience," he added. In the shorter term, quick wins can bring about substantial savings without requiring extensive buy-in from multiple stakeholders, with one regional utility provider in the GCC region achieving 8-15% OpEx savings in just three years through tactical reforms including fine-tuning expenditure capitalization policies, optimizing vehicle policies and fleet size, and adjusting overtime policies. The success of quick wins paves the way for longer-term initiatives involving more extensive organizational restructuring, process improvement, or digital transformation, with such longer-term, more strategic moves likely to capture an additional 7-15% of the potential gains from operating expenditure optimization. The report notes that in today's environment, optimizing operational expenditures is both a necessity and an opportunity. For utilities, leadership in executing these strategies will determine whether they can meet today's challenges and thrive as key enablers of their national economic and sustainability goals. Vlad Gheorghe, Principal at Strategy& Middle East, said: "Optimizing operational spending requires a structured approach that balances quick wins with longer-term transformation." "Tactical actions can create immediate impact and build momentum, while strong leadership and program design are key to driving sustained performance and long-term value," he added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
