Dubai:
Middle East CEOs paint positive, but guarded picture about growth in the region, according to the latest Annual Global CEO Survey of PwC, which interviewed more than 50 CEOs from the region as part of the global survey of 1,300 CEOs.
The survey showed CEOs in the region, though confident, are playing a cautious hand when it comes to growth strategies, avoiding more speculative new ventures and refocusing on core capabilities and securing growth with tried and tested partners and exit strategies.
Among the Middle East respondents 38 per cent are very confident about their company’s prospects over the next 12 months compared to 34 per cent in 2016, and as many as 60 per cent have the same degree of confidence over the next three years — by far the highest of any region. This confidence also resonates into plans for workforce: 56 per cent of the region’s respondents expect to increase their headcount over the next year.
“Despite a tumultuous 2016, our findings paint an encouraging picture for the year ahead and beyond: CEOs in the region are stepping up to the challenge of digital technology: seizing the possibilities it offers and addressing the risks it can pose,,” said Hani Ashkar, PwC Middle East Senior Partner
The findings reveal that although organic growth is high on CEOs’ agendas business leaders in the region are more likely to be looking for strategic partnerships (54 per cent vs. average of 48 per cent); more likely to plan cost reduction activities at 68 per cent compared to survey average of 62 per cent.
Survey results showed that regional CEOs less likely to explore collaborating with entrepreneurs (lowest at 22 per cent vs. 34 per cent in North America and 39 per cent in Europe); and much more likely to be looking to exit a business or market considerably the highest percentage at 30 per cent, against an average of 15 per cent.
Digital initiatives tops the list of strategic priorities for CEOs in the region (22 per cent), followed by innovation (14 per cent), human capital (12 per cent) and funding for growth (10 per cent).
Among the region’s CEOs 30 per cent believe that technology has completely reshaped competition in their industry in the last five years. After several high-profile technology and security issues for big companies, Middle East CEOs unsurprisingly identified cyber security, data privacy breaches and IT disruptions as the top three technology threats to stakeholder trust.
In the Middle East, these concerns are in fact the highest of all regions with 74 per cent viewing risk in breaches and data privacy as their biggest threat compared to a global average of 55 per cent. Similarly, the region shows the highest level of concern about cybersecurity breaches — 66 per cent vs. average of 53 per cent. Despite these concerns, CEOs in the Middle East have identified the clear opportunities that lie ahead with 84 per cent believing that the way their business manages data will be a positive differentiating factor in the future.“ Our findings also tell us that our Middle East CEOs are equally if not more digitally savvy than their global peers: 76 per cent are consumers of digital media, 66 per cent believe to have strong digital skills, 56 per cent are active on social media and 22 per cent are even active gamers,” Ashkar said.
