Eyebrows were raised when Saudi Arabia announced plans to end its “addiction” to oil through what amounts to an economic makeover. With oil prices dwindling, the move towards a modernised economy, and partial sell off of the energy giant Aramco, made perfect sense.

The surprise came with the promise that Saudi Arabia could live without oil by 2020 on its way to becoming a global player on the world investment stage. Dubai has already made that journey, responding to the reality that its oil reserves were running dry by driving growth in trade, real estate, banking and tourism.

But that process took a lot longer than four years, and Dubai also placed a massive emphasis on becoming an attractive place both to do business, and live, underlining the challenge that Saudi Arabia now faces. The effect of falling oil prices are being felt daily in the Middle East, not least with cuts in government subsidies sending energy costs soaring for some of the region’s biggest industrial companies.

After dairy firm Almarai said that utility price increases combined with new crop-growing restrictions will increase its costs by Dh489 million this year, its shares fell by 8 per cent overnight. Companies like Almarai may now look to invest in green energy technology capable of slashing emission levels and energy consumption and bringing huge savings.

In other sectors, employers have already been forced into redundancies, among them Emirates NBD, one of Dubai’s leading banks, which has laid off around 300 people in recent weeks. In fact, recruitment agencies in the region are saying that as many as 1,500 bankers have lost their jobs in recent months as a consequence of the low price of oil.

The trend is bringing anxiety in the lead up to the summer for parents already concerned about rising school fees. To counter fear in difficult times, the best CEOs come into their own, staying calm and making the right decisions, while finding ways to instill confidence in their team, and take the fear away.

When that happens, people do amazing things. They go to greater lengths to contribute to the success of the business, and in doing that, they bury their own concerns. Top management are brave, but realistic.

If they believe in their vision, they make it clear that they’re going to stick to it, and engage their team by underlining for them the role they have to play in getting the business through choppy waters.

The courage comes in recognising when a strategy is no longer working, and changing that strategy when market forces demand it. Otherwise, the consequences can be dire.

It was a shock to wake up one morning recently and read that one of the UK’s biggest retail names, BHS (British Home Stores), had collapsed into administration, putting 11,000 jobs at risk. For more than 80 years, BHS has been a leading high-street attraction for millions of shoppers flocking to the 164 stores now threatened with closure.

With reported debts of about £1.3 billion, including a £571 million pension deficit, something has gone horribly wrong for one of the UK’s iconic business brands. There will be many reasons why this has happened, but one of them will be that there were elements of arrogance among the senior management team.

That’s certainly the view of Dominic Chappell, the former racing driver who ran BHS until its collapse. He has accused the chief executive, Darren Topp, of “haemorrhaging” money from the company, also calling him a “jumped up store manager”, and claiming he had failed on every point of the business plan he presented.

The writer is Head of PA Consulting Group, Middle East and North Africa. All opinions expressed are his own.