Stephen Anderson, Leader of Middle East Strategy & Markets at PwC: Optimistic Outlook from Middle East CEOs for the Future

CEOs across the Middle East are feeling optimistic about their futures despite uncertainty in the geopolitical landscape and challenges facing the global economy, according to PwC’s Middle East CEO Survey.

But unlike businesses elsewhere, those in the Middle East aren’t just weathering the storm. According to the survey’s key findings, they’re also accelerating their transformation efforts.

The first key finding is that two-thirds of CEOs in the region expressed confidence in growth in the Middle East. Stephen Anderson, Middle East Strategy & Markets Leader at PwC, attributes this optimism to favorable macroeconomic conditions in the region, a sharp contrast to the hesitancy seen in other parts of the world.

The second key finding is that CEOs are keenly aware of the need to transform their businesses. Despite global turbulence, those in the Middle East are remaining steadfast in their intentions to grow their businesses, diversify their products and invest with long-term viability in mind.

Surprisingly, four out of ten CEOs doubt that their business model will be viable in 10 years’ time, a bold acknowledgment of the transformations happening across the region. According to Anderson, the Middle East is being reimagined through digitization, decarbonization, privatization, localization and modernization.

CEOs are transforming their businesses by investing in diversification, increasing salaries and taking steps to retain staff. Notably, 80% of CEOs plan to invest in upskilling as they understand the importance of talent.

The third key finding is that digitalization is key to transformation, with 84% of CEOs planning to invest in technology. Two-thirds are also ready to embrace automation, the metaverse and cloud technology.

The final key finding from the survey was that CEOs are placing more emphasis on climate change, and 50% are already thinking of ways they can make their products more sustainable. Anderson attributes this positive shift to the awareness and pressure the region has faced after Egypt hosted COP 27 in 2022, with the UAE set to host COP 28 in 2023.

In the face of global economic uncertainty, Middle East CEOs are set to stay optimistic, step up their transformation efforts, speed up digital initiatives and prioritize climate action. The impact of these moves will be revealed in the next PwC CEO Survey.