UAE CEOs bet big on AI and ESG to navigate complex global environment
- KPMG UAE CEO Outlook Report 2024 finds that while globally 72% of CEOs are confident in economic growth prospects, 96% of CEOs in the UAE are confident in their industry’s growth compared to 79% in the Middle East.
- More than half are considering generative AI a top investment priority.
- As many as 56% expect a significant return on ESG investments within 3 to 5 years.
Dubai, UAE, 19 September 2024: UAE CEOs have backed their businesses to prosper in the face of declining confidence in the global economy, this is according to the latest findings of the KPMG UAE CEO Outlook Report. UAE CEOs were among the most confident in the region, with 96% confident about their industry’s growth compared to 79% in the Middle East. The report which surveyed 1,325 CEOs worldwide, also found that 72% of CEOs are confident in economic growth prospects.
This optimism is mainly driven by trust in the leadership and government policies, The nation’s positive economic outlook is supported by its thriving tourism sector and continued economic expansion, ranking UAE highly in terms of safety and security, UAE also went up three places to secure 7th place globally in the World Competitiveness Report.
As the UAE continues to strengthen its role as a regional leader in technology, sustainability, and economic diversification, with GDP growth projected to reach 4.1% by 2025, 100% UAE CEOs expect to increase headcount over the next three years compared to 92% globally reflecting the fast-growing economy and need for increased hiring in the workforce. A continued emphasis on Emiratization is expected to drive the private sector forward with 68% believing that investment in skills development and lifelong learning is essential to securing future talent pipelines.
76% of CEOs both globally and in UAE anticipate AI will not fundamentally reduce the number of jobs within their organizations over the next three years with 52% of UAE CEOs considering generative AI a top investment priority in 2024.
56% of UAE CEOs expect returns on ESG investments within 3 to 5 years, compared to 55% globally, reflecting the UAE CEOs alignment with the country's sustainability agenda and global trends in driving corporate strategies. However, the report highlighted that most global and local CEOs anticipate they will be required to balance centralized and devolved strategies in response to geopolitical uncertainties and climate change.
The UAE’s stable economy, supportive business environment, and the government’s focus on innovation and sustainability have all contributed to long-term business prosperity. Almost half (48%) of CEOs in the UAE were found to have a high mergers and acquisitions (M&A) appetite, compared to only 28% in the Middle East.
Emilio Pera, Senior Partner, and CEO of KPMG Lower Gulf said: “The UAE is at the forefront of regional economic and technological transformation, driven by its commitment to innovation, sustainability, and a diversified economy. Our CEO Outlook Report reveals that local business leaders are significantly more confident about growth prospects than their global counterparts. AI adoption and ESG investments continue to remain priorities for CEOs, highlighting the importance of these investments in shaping future growth. Equally, Emiratization is not only promoting a more inclusive economy but is also enhancing the nation's long-term stability and growth prospects.”
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