Middle East business leaders are among the most confident worldwide of growth this year, with 90 per cent of GCC chief executives expecting revenue increases, and 61 per cent planning to expand their workforce.
However, chief executives also recognise the urgent need to reinvent their businesses amid the powerful wave of AI-led transformation, the need for climate action and the blurring of industry lines in the search for new domains of growth. The threat of cyber risks also remains a key concern, with 40 per cent of industry leaders identifying it as a top threat.
These are among the key findings from PwC’s 28th Annual CEO Survey of global and regional business leaders, which had responses from 4,700 CEOs around the world, including a record of almost 300 from across 11 countries in the Middle East.
The findings were revealed alongside a roundtable of top regional chief executives, hosted by PwC Middle East. Elda Choucair, chief executive of Omnicom Media Group, Naim Yazbeck, general manager of Microsoft UAE, and Rola Abu Manneh, chief executive of Standard Chartered Bank UAE, provided broader insights while addressing the survey findings.
Innovation and agility are driving the agendas for business leaders in the year ahead. Naim Yazbeck described the rate of digital transformation as unprecedented. “At the pace is AI moving, there are bound to be surprises that may change our course of direction. Disruption can come out of the blue,” he said.
AI adoption in the Middle East
The survey found a higher rate of AI adoption among Middle East CEOs than their peers globally, leading to improved time efficiencies, profitability and revenue, in addition to a more tech-savvy workforce.
A notable 88 per cent of CEOs in the GCC adopted GenAI in the past 12 months, with 36 per cent highlighting job creation through GenAI - more than double the global average (17 per cent). And for those GCC business leaders who have adopted GenAI, 68 per cent acknowledged improved efficiencies in their own time at work, and that of employees (63 per cent).
Looking ahead, survey figures revealed 70 per cent of GCC chief executives believe GenAI will increase profitability within 12 months, compared with 49 per cent globally.
“We’re lucky to be in a region where AI is top priority - not just for CEOs, but also for country leaders,” said Mr Yazbeck. “I don’t think, globally, there are as many leaders as committed to leveraging the opportunity.”
The survey data has also revealed that over the next three years 91 per cent of CEOs in the region plan to embed AI and GenAI into technology platforms, 86 per cent into business processes and workflows, 80 per cent into workforce and skills strategies, and 79 per cent into new products/services development.
Rola Abu Manneh emphasised that AI and digital transformation are at the top of mind for every CEO in the banking sector and highlighted the role of the Standard Chartered AI Council in driving innovation.
She said: “We’re investing a lot in AI because of evolving customer requirements and fintech disruptors. If we don’t reinvent ourselves, we will not survive as banks. The traditional banking model is no longer there.”
She added: “Reskilling is very important. As an organisation, you will be more nimble, more agile and more efficient.”
Elda Choucair, of Omnicom Media Group, said: “The AI revolution in advertising started at least five years ago. It’s been years since we moved from relying solely on human intelligence and capability to build, plan and negotiate. The pace of change is not going to stop.
"The name of the game now is the acceleration part, how fast we can upskill and adopt the new technologies that are continuously disrupting what we already have. This comes with a lot of investment into educating oneself.”
With 34 per cent of GCC chief executives saying skills shortages were a major concern, Mr Yazbeck touched on skillset challenges.
He said: “AI has moved at an unprecedented pace, unlike any technology before it. Especially in this region, everyone wants to lead on AI. The skill set to support this momentum will need time.”
He continued: “There should be a balance between ambition and what’s possible. Upskilling programmes are going to be key for those who want to be leaders in this new era of AI. It will not replace human beings, but people with AI skills will replace those without AI skills.”
AI governance and other risks
Many CEOs in the survey spoke of anticipated regulatory changes - such as in technology and climate - as critical external factors influencing the economic viability of businesses over the next 10 years.
Mr Yazbeck identified that responsible AI governance is a big challenge, emphasizing the importance of ensuring its enforcement.
“How much countries, governments and the private sector, come together to ensure there’s governance around responsible AI is going to be key,” he said.
Ms Choucair also touched upon risk, questioning whether regulation is keeping pace with rapid advancements. “What does regulation look like? Do we have the legal setup to think about these things? Do all the people who do procurement and legal and finance understand AI’s impact on our business? Upskilling needs to happen so that everybody can understand the dynamics emerging now,” she said.
According to the survey, 71 per cent of GCC CEOs are optimistic about economic growth in their territories - ahead of their global peers.
Ms Abu Manneh echoed this. “As a manager, responsible for eight territories, I see the countries in the region driving growth,” she said. “We’re confident. There is that element of geopolitical risk, but we’ve always had geopolitics, and you learn to navigate and mitigate the risks.”
She also spoke about the importance of the region as a hub for innovation and growth: “If you look at the regional governments, the strategy, investments in AI technology, as well as in climate change, this is where we mirror the government’s vision and align our products, services and our strategy,” she said.
Survey figures also indicated businesses in the region addressing the climate crisis to gain a strategic advantage - nearly 80 per cent of GCC business leaders said they had initiated climate-friendly investments in the past five years, signalling a positive regional momentum towards sustainability.
Both Standard Chartered and Microsoft executives spoke of company sustainability efforts. Mr Yazbeck explained how technology was helping to push sustainable solutions, such as clean energy, with the region stating clear objectives for renewables.
Ms Abu Manneh said: “It’s a journey. It needs everybody to work together, all countries because the financing gap is huge. Sustainability should be part of your organization's DNA. This is also helping to attract talent, as people want to work in a place with a sense of purpose.”
Ms Choucair said: “There’s a huge weight on big companies to lead the way, there’s a cost aspect, and long-term planning - a lot to come into play in order to deliver on all these objectives.”
Innovation and economic growth
Last year, almost half the Middle East CEOs expressed concerns about their organisation’s economic viability over the next 10 years if they failed to evolve. This year that figure has risen to 60 per cent in the Middle East versus 42 per cent globally, making reinvention an urgent imperative. Partnerships have also been highlighted as critical by chief executives in the survey, as businesses look towards new sources of revenue growth.
Nearly half of regional CEOs PwC surveyed were already competing in new industries and sectors, while 72 per cent expected to do a deal outside of their current sector within three years. So how does a company balance the need for reinvention while maintaining operational stability?
“For us, reinvention and operational excellence is one and the same,” Ms Choucair said. “Your operation has to be reinvented so we become more efficient. It’s part of the whole cycle of change and technological advancement - the combination, or the integration between technology and human is really at the heart of what we are experiencing right now.”
Ms Choucair emphasised the importance of “collaboration” and “striking partnerships that allow you to move in and out of your industry. Human nature is to resist change – but if you don’t embrace it, you become obsolete”.
Replying to this, Mr Yazbeck added: “Innovation is going to come through collaboration. Not a single company today can keep on innovating forever.”
He continued: “Every industry is going to be a tech-driven industry and the name of the game, other than collaboration, is going to be who will win the skill set war. Companies and countries who are able to attract key skills are going to be ahead of the curve. Some countries have that partnership culture in their DNA - the UAE is built on partnerships.”
Ms Abu Manneh agreed and concluded: “If we don’t move and move fast - there’s competition from outside. Expectations have changed, and if we don’t change as well, we’ll just be left behind.”
This page was produced by The National in partnership with PwC
