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While the vast majority of CEOs worldwide are global recessionTop bosses of some of the largest corporations United Arab Emirates Anticipate growth and expect their income increasedaccording to a new study.
Only 24% of CEOs Second largest economy in the Arab world Economic downturn is expected, while 86% of executives globally agree or strongly agree on the likelihood of a recession in the next 12 months, consulting firm KPMG said in the latest news CEO Outlook report Friday.
60% of Emirati executives surveyed expect their company’s earnings to grow between 2.5% and 4.5% annually over the next three years. That number is more than double the number of global executives, or 28% of global respondents, who expect a similar increase in earnings.
A KPMG survey of 1,325 business owners in 11 markets around the world said that global chief executives are preparing to implement their resilience strategies over the next six months, while “UAE chief executives have already laid out their strategy “.
“Local CEOs are moving forward with a bold vision,” said Nader Hafar, chairman of KPMG’s Middle East and South Asia region. and KPMG down the Bay Area CEO.
“They are consolidating strategies to deal with inflationary pressures and defend against cyber attacks, and are receiving sustainability reports.”
The optimism stems from the UAE government’s efforts to address potential headwinds and build up the country’s economic resilience as it emerges from a pandemic-driven slowdown.
The country also has advantages that make it better able to withstand global economic shocks, including its strategic location, strong financial reserves and a large asset-based sovereign wealth fund, the survey showed.
UAE economyA strong rebound from a pandemic-driven slowdown in 2021 has picked up pace this year. It will expand by 5.4% by 2022, according to the UAE Central Bank.
Emirates NBD, Dubai’s largest bank, expects the economy to grow by 7 percent in 2022, giving the country its fastest annual expansion since 2011, when output rose 6.9 percent.
Meanwhile, Abu Dhabi Commercial Bank is expected to grow by 6.2%, driven by the oil and non-oil economic sectors.
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Business activities in the UAE non-oil private sector economy continued to improve in October, S&P Global Purchasing Managers’ Index rose to 56.6, as the new Business Output climbed as demand and employment increased.
Neutral readings above 50 indicate growth, while readings below neutral indicate contraction.
88% of UAE business owners are confident in the country’s economic growth prospects, while 96% are optimistic about the growth of their industry, up from 88% recorded in the 2021 survey.
However, they lack confidence in the growth prospects of the global economy. Some 56% are confident in global growth over the next three years, compared with 71% of global CEOs.
Compared with 44% in 2021, “optimism is moving in a positive direction in the UAE” is still evident, KPMG said.
This year’s survey shows that the UAE market is “well positioned to withstand geopolitical instability, inflation and a looming global recession”, Mr Hafar told National.
“With strong financial reserves, diversification of supply chains and strong adoption of digital and cybersecurity strategies, we are seeing the impact of the UAE leadership’s vision to build a resilient economy during a global downturn.”
Local CEO is moving forward with bold vision
Nader Hafar, Chairman of KPMG Middle East and South Asia and CEO of KPMG Lower Gulf
Policymakers in the UAE are already bracing for a potential slowdown by diversifying supply chains and boosting productivity by expanding the country’s industrial base.
Global CEOs plan to do the same, but only 32% of respondents are actually sufficiently diverse, compared to 68% in the UAE.
“This puts local leaders at least six months ahead of their global counterparts,” the report said.
Businesses are now turning to outsourcing more aspects of their supply chain. Some 32% of business leaders in the UAE said they plan to source domestically within the next three years to increase production resilience.
“With 75% of companies globally experiencing supply chain disruptions during the Covid-19 pandemic, using local suppliers can provide insurance against new Covid-19 variants and geopolitical instability,” KPMG said.
About 96% of UAE CEOs said Aggressive digital strategy In place – well above the global rate of 72%.
Business leaders in the UAE are increasingly ambitious for technological transformation.More than 80% of those surveyed in the UAE (up from 64% last year) say they drive digital transformation Rapid growth is critical in competing for talent and customers.
CEOs around the world also watched geopolitical uncertainty as a reason for concern Network attacks in their company. In the UAE, 92% of respondents said their organisation was well prepared for a cyber attack, compared to 56% of global business owners.
60% of business leaders in the UAE say Hybrid and Remote Work Policy There has been a positive impact on recruitment to their organization over the past two years.
These policies also Boosted employee morale In most cases (56%) and positively influence collaboration and innovation (68%).
However, only 36% of CEOs now expect to “continue Employee Mixed Work Their roles have traditionally been in the office.”
According to the study, 60% of UAE leaders expect them to return to the field, similar to 65% of business leaders globally.
Updated: 11/11/2022 5:00am
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