Middle East CEOs expect revenues to rise this year, but are concerned about cyber risks

Dubai: A large number of Middle East-based business leaders expect global growth to improve in 2022, according to a PwC survey.

A year ago, as the first COVID-19 wave subsided, Middle East CEOs felt able to look ahead with cautious confidence. Over the course of 2021, their positive short-term outlook strengthened as a result of the strong health response, commodity prices, rising consumer demand and strengthening fiscal positions, said the report.

Consequently, 64 per cent of Middle East CEOs are now extremely or very confident about their company’s revenue growth prospects in 2022, markedly higher than the global figure of 56 per cent. The survey also found that the top two markets for revenue growth are Egypt at 37 per cent and Saudi Arabia at 27 per cent, as well as US and China outside of the region.

“We’re pleased to see that regional business leaders share our confidence that renewed growth lies ahead. These business leaders are now looking beyond COVID-19 with a focus on delivering sustained outcomes,” said Hani Ashkar, PwC Middle East Senior Partner.

Like their global peers, the region’s CEOs continue to digitise business operations, from supply chains to sales channels, as governments across the Middle East carry on with ambitious modernisation agendas.

In total, 52 per cent of Middle East CEOs plan double-digit investments in digital transformation over the next three years. This year’s survey indicates that a growing proportion of Middle East business leaders have grasped that success in the digital age requires skilled people as well as the latest technologies ‒ 46 per cent of regional respondents plan double-digit investments in leadership and talent development over the next three years.

“Armed with new optimism, CEOs are fashioning a growth agenda that channels energies towards new business models, customer experiences and organisational efficiencies facilitated by the cloud and digital tools,” said Stephen Anderson, Middle East Strategy and Markets Leader.

Around 57 per cent of Middle East respondents say that cyber risks will have a negative impact on their company in 2022, higher than the global average of 49 per cent. Middle Eastern companies appear to be more targeted than companies in other geographies due to reasons including a strong link with local governments and increasing regional geopolitical tensions.

As a result, 65 per cent of regional business leaders believe cyber risks will limit their organisation’s ability to innovate in 2022 and 59 per cent say these threats will undermine sales of products and services. The pandemic is also still a concern, with 48 per cent of regional CEOs indicating that they are extremely or very concerned about health risks.