UAE CEO outlook 2024

The 10th edition of the KPMG CEO Outlook Report is a compelling look into the future, shaped by the voices of global and regional leaders. We surveyed 1,325 CEOs worldwide, including 25 in the UAE and 75 in the Middle East. We garnered trailblazers’ opinions across four themes: economic outlook and geopolitics, ESG, talent and technology. The MENA region is entering a period of significant economic growth, supported by strategic investments, technological advancements and a commitment to sustainable development. Our report provides an overview of the region’s economic landscape, highlighting the UAE's crucial role in driving growth and innovation.

According to forecasts, the region's growth is expected to reach 2.8% in 2024 and 4.2% in 2025. This positive outlook is driven by strong economic policies and strategic initiatives aimed at fostering sustainable development and resilience.

The United Arab Emirates (UAE) is a key player in this regional development. The UAE's real GDP is projected to grow by 3.9% in 2024 and further expand to 4.1% in 2025, as reported by the World Bank. These figures reflect the UAE's efforts to diversify its economy and invest in innovation.

The Central Bank of the UAE (CBUAE) also forecasts a 3.9% growth in overall output for 2024. Celebrating its 50th anniversary in 2023, the CBUAE has been actively working to address climate change through its Green and Sustainable Finance Initiative which aims to mitigate climate-related risks and support sustainable financial practices. During COP28 in Dubai, the UAE banking sector announced the mobilization of AED 1 trillion in sustainable finance by 2030.

In addition to its sustainability efforts, the CBUAE is advancing the digital transformation of the UAE's financial infrastructure. With the launch of initiatives like Al Etihad Payments (AEP) and the Domestic Card Scheme (DCS), Jaywan, the UAE is taking significant steps towards enhancing financial inclusion and efficiency.

The nation’s commitment to climate action was further demonstrated through its COP28 presidency. The UAE has partnered with future COP29 and COP30 hosts, Azerbaijan and Brazil, aiming to limit global warming to 1.5ºC. This partnership, called Mission 1.5ºC, will maintain momentum across successive COP conferences, enhance international collaboration and ensure the fulfillment of climate agreements.

The World Governments Summit, held in Dubai in February 2024, emphasized the importance of regional and international collaboration. It featured insightful discussions with heads of states including Turkey, India, Rwanda and Kenya, bridging the gap between today’s visions and future opportunities.

Despite the complexities of geopolitics and the global economy, there is optimism for the Gulf Cooperation Council (GCC) region, particularly the UAE and Saudi Arabia, to see a rebound in economic expansion. The UAE's projected GDP growth of 6.7% in 2025 is driven by diversification efforts and robust trade. Both oil exporters and importers in the region are also expected to see similar growth rates, with the economies of oil exporters projected to grow by 2.9% in 2024 and 4.2% in 2025.

The UAE's technology landscape is setting a global example for strategic AI adoption, prioritizing ESG and cybersecurity and advancing business technology. The nation envisions becoming a global hub for innovation, with a focus on AI, advanced healthcare and space exploration. One of the most significant initiatives is the UAE Digital Economy Strategy, launched in April 2022, which aims to double the contribution of the digital economy to gross domestic product (GDP) from 9.7% to 19.4% in the next 10 years.

Collaborations with Nasdaq giants like Microsoft and NVIDIA are also leaving a positive impact on the UAE’s economy by driving innovation and enhancing the UAE’s technology landscape. In line with the UAE’s vision of a diversified, knowledge-based economy, research shows that these initiatives are expected to contribute 19.4% to the country’s GDP within the next decade.

Emiratization remains a key priority for the UAE, driving significant progress in integrating UAE nationals into the private sector. Emiratization rates have increased beyond targets in 2023 with the successful hiring of 2,720 UAE nationals, exceeding the original objective of 1,875. The Emiratization rate in leading jobs in banks has also increased by 8% to 31% in total.

About the KPMG 2024 CEO Outlook

The 10th edition of the KPMG CEO Outlook, conducted with 1,325 CEOs between 25 July and 29 August 2024, provides unique insight into the mindset, strategies and planning tactics of CEOs.

All respondents have annual revenues over US$500M and one-third of the companies surveyed have more than US$10B in annual revenue. The survey included leaders from 11 markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the United Kingdom and the United States) and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecommunications).

NOTE: Some figures may not add up to 100 percent due to rounding.