Against the backdrop of a sharper-than-expected slowdown in the global economy with growth forecasts being slashed, business leaders in the UAE and Saudi Arabia have a much more positive outlook for the year ahead, a recent study by Gedeon Mohr & Partners finds.
In a survey of 250 business leaders across the UAE and Saudi Arabia, 70% of executives are viewing 2023 with optimism about the economy, with 46% feeling “very optimistic” about the year ahead.
The findings reiterate the latest IMF growth forecasts for both countries which estimate that the UAE economy is set to grow by more than 6% while Saudi economy is growing at its fastest rate in a decade at 7.6%. While global executives are dealing with the consequences of the growing cost of living crisis, tightening financial conditions in most regions, the Russia-Ukraine conflict, and the lingering COVID-19 pandemic, the study shows that the region’s business leaders are focused on the positive outlook and the opportunities arising from a growing regional economy.
The Gedeon Mohr & Partners analysis shows that innovation, technology, growth, and transformation are at the “heart of the strategies” that businesses are pursuing for 2023, with investments being focused on new e-commerce solutions, digital, and marketing and PR. Over 60% of UAE and KSA business executives are putting business growth and sustainability at the top of their business agendas, in line with the forward-thinking visions of both countries.
Challenges
Although UAE and KSA business leaders are hopeful for 2023, they are aware of the global threats that can negatively impact them such as the effects of global economic challenges, climate change, and cost increases in the coming year. Climate change is now a key area for concern for the region’s business leaders with 81% of UAE executives and 70% Saudi leaders feeling “very concerned.”
While the UAE and KSA economies continue to boom, the countries also face some challenges, particularly around the workforce.
According to Gedeon Mohr & Partners, attracting talent to support economic growth is a key area for concern for business leaders with 18% of them reporting it as the biggest workforce challenge they will face in 2023. However, topping the survey for workforce challenges was hybrid working reported by 26% of the respondents.
The significant government support to the business and entrepreneurial ecosystem in both countries is paying off and continues to be a key priority of greater importance especially as the global economy is facing several severe challenges impacting on growth and national economies.
