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      The 2025 KPMG CEO Outlook reveals a striking sense of optimism across the Middle East, even as global business leaders navigate persistent geopolitical, economic, and technological volatility. CEOs in the region remain notably more confident about their organizations’ prospects than their global peers — a reflection of both structural resilience and a forward-leaning commitment to innovation.

      Across the region, business leaders are recalibrating growth strategies to respond to a world defined by interlinked risks — from inflation and supply chain constraints to cyber threats and regulatory complexity. Yet the prevailing mood is one of resolve and opportunity. Most CEOs anticipate revenue and headcount growth over the next three years, driven by sustained investment in technology, digital infrastructure, and workforce transformation.

      Artificial intelligence continues to dominate strategic priorities. A significant majority of regional CEOs have already integrated AI into their operations or are accelerating deployment plans. Confidence in governance, data quality, and responsible use is particularly high, signalling maturity in digital transformation and readiness to capture value from next-generation technologies.

      The human dimension of transformation remains central. CEOs are reshaping roles, reskilling teams, and building agile, tech-savvy cultures capable of sustaining long-term competitiveness. With young, dynamic populations and ambitious diversification agendas, the region’s economies are positioning themselves as global exemplars of how digital transformation can coexist with people-led growth.

      Sustainability and ESG considerations are also becoming embedded in strategy. Regional leaders increasingly view climate goals not merely as compliance obligations but as pathways to growth and innovation. Confidence in meeting evolving ESG requirements is higher than the global average, and the integration of sustainability with AI and data analytics is opening new opportunities for transparency, efficiency, and impact.

      The findings show that CEOs across the Middle East are turning disruption into opportunity — investing boldly in technology, innovation, and talent to drive growth. In both Saudi Arabia and the UAE, we’re seeing strong confidence and a clear commitment to responsible innovation, particularly in AI, where leaders are coupling ambition with solid governance and upskilling strategies. There’s an increasing understanding that balancing innovation with responsibility is key — ensuring progress on ethics, regulation, and workforce readiness keeps pace with technological change. Those who align digital transformation with their people and sustainability agendas, and invest strategically in the right areas will be best positioned to unlock new opportunities and deliver long-term, sustainable growth.

      Dr. Abdullah Al Fozan

      CEO, KPMG Middle East

      CEOs in Saudi Arabia are demonstrating a strong sense of confidence and strategic focus despite persistent global uncertainty. Our survey finds that 88% of CEOs in the Kingdom are optimistic about their companies’ growth prospects over the next three years — well above the 79% global average. While confidence in the national economy (60%) and the global economy (52%) is cautious, it reflects a balanced and realistic outlook that supports ongoing stability and long-term growth.

      Leaders in the Kingdom are investing decisively in AI-driven transformation, positioning it as a cornerstone of long-term competitiveness. Nearly half (47%) identify AI integration as a top investment priority, and 84% express confidence in their ability to deploy AI responsibly under strong governance frameworks — above the 76% global benchmark. This aligns closely with national initiatives such as the launch of HUMAIN, a Public Investment Fund (PIF) company that will anchor the Kingdom’s end-to-end AI ecosystem and accelerate digital leadership across key industries.

      Workforce strategies in Saudi Arabia are equally ambitious. 68% of CEOs expect headcount to grow over the next three years, while 68% are actively redesigning roles to integrate AI into operations. With a young population and a deepening focus on human capital, the Kingdom’s leadership recognises that sustainable digital transformation depends on empowering people, not replacing them.

      Sustainability remains integral to this vision. 76% of CEOs in Saudi Arabia say their organizations are aligning sustainability goals with core business strategy, compared with 44% globally. 92% are confident they can meet evolving ESG regulations, and 88% believe AI will play a pivotal role in advancing decarbonization and data transparency.

      CEOs are investing in AI with greater confidence — not just because of its promise, but because of the measurable value they are seeing and the rapid emergence of agents, making expected returns more accessible and scalable. Leading organizations are integrating AI into the core of their business strategies and investing in what’s needed for success: quality data, workforce readiness, and responsible AI governance built both for trust and agility.

      Emilio Pera

      Deputy CEO, KPMG Middle East

      Economic outlook

      CEOs remain optimistic despite global uncertainty

      Saudi business leaders continue to demonstrate strong confidence in the Kingdom’s economic trajectory despite global volatility. 88% of CEOs are optimistic about their company’s growth prospects over the next three years — nearly ten points above the global average of 79% — and 60% express confidence in the national economy. Even confidence in the global economy, at 52%, indicates resilience in outlook given the current geopolitical climate.

      This optimism is grounded in the region’s solid macroeconomic fundamentals and ongoing progress toward Vision 2030 objectives. According to the IMF’s Regional Economic Outlook (October 2025), non-oil GDP growth across the Gulf Cooperation Council (GCC) averaged 4.3 percent in 2024 and is projected at 3.8 percent in 2025, driven by robust domestic demand, strong credit expansion, and sustained infrastructure and diversification investment. In Saudi Arabia, real GDP is forecast to expand by 4.0 percent in 2025, underpinned by the continued rollout of giga-projects, public investment programmes, and structural reforms aimed at broadening the economic base beyond hydrocarbons.

      Investment priorities among CEOs in the Kingdom reflect a balance between short-term resilience and long-term innovation. 36% identify AI as a top investment focus, while 44% are prioritising cybersecurity and 24% workforce upskilling. This distribution underscores a deliberate effort to future-proof business operations while maintaining competitiveness in a rapidly digitalising economy.

      Mergers and acquisitions also remain a growth lever: all of the surveyed CEOs in the Kingdom plan to pursue deals with moderate or significant impact over the next three years, suggesting sustained appetite for strategic expansion.

      At the same time, leaders are aware of the external headwinds shaping the regional landscape. According to the IMF’s Regional Economic Outlook (October 2025), lower oil prices, moderating global demand, and persistent geopolitical tensions are expected to narrow fiscal and current account surpluses across GCC economies over the medium term. In response, the Kingdom continues to recalibrate spending, accelerate non-oil revenue reforms, and attract private investment — actions aligned with CEO priorities for resilience and self-sufficiency.

      Technology and AI

      CEOs forge ahead with AI integration while balancing risk

      AI has become a defining pillar of Saudi Arabia’s transformation agenda, and CEOs are aligning corporate strategies accordingly. Over a third (36%) of Saudi business leaders identify AI integration as a top investment priority, compared with 34% globally. Two-thirds report allocating 10–20% of their corporate budgets to AI initiatives, signalling confidence in AI’s ability to deliver measurable impact in the short to medium term.

      Confidence in responsible AI deployment is also strong: 84% of CEOs in Saudi Arabia say their organizations are prepared to deploy AI under robust governance frameworks, compared with 76% globally. This high level of preparedness reflects the Kingdom’s coordinated national approach to data infrastructure, digital regulation, and innovation enablement.

      Boards and executive teams are demonstrating increasing maturity in overseeing AI adoption. 64% of Saudi Arabia-based CEOs believe their boards are fully equipped to manage the introduction of advanced technologies, and 84% say their organizations have the data readiness required for safe, scalable AI integration. The result is a business environment that views AI not as experimental but as mission-critical to competitiveness.

      In 2025, HRH Mohammed bin Salman, Crown Prince and Prime Minister, announced the launch of HUMAIN, a PIF-owned company that will operate across the AI value chain. HUMAIN represents a strategic shift from adoption to global leadership, consolidating Saudi Arabia’s AI ambitions under a single, integrated framework.

      HUMAIN’s remit spans next-generation data centres, AI infrastructure, and advanced large language models (LLMs) — including the development of one of the world’s most powerful multimodal Arabic models. This initiative strengthens the Kingdom’s AI sovereignty, ensuring that local innovation and intellectual property creation remain at the core of future growth.

      HUMAIN reflects the country’s broader strategy of pairing sovereign investment with technological excellence — moving from digital transformation to digital leadership.

      Talent

      Competition for AI skills is a key focus for CEOs

      Business leaders are clear that technology alone cannot deliver sustainable transformation — people are at the centre of progress. 68% of CEOs in Saudi Arabia expect to increase headcount over the next three years, signalling confidence in business growth and job creation. At the same time, 68% are redesigning roles to integrate AI into operations, ensuring that workforce transformation keeps pace with technological advancement.

      The Kingdom’s approach to workforce development mirrors its broader reform agenda under Vision 2030. With a predominantly young population, Saudi Arabia benefits from a demographic advantage that supports rapid adaptation to new technologies. Only 8% of CEOs identify an ageing workforce as a significant challenge, compared with 26% globally, highlighting the agility of its labour market.

      Investment in skills and culture remains a strategic imperative. 68% of CEOs report that their organizations are actively retraining or retaining high-potential talent, while 64% are hiring new AI and technology specialists — both in line with or above global averages. This alignment reflects a national focus on building a tech-savvy workforce that can sustain innovation in critical sectors such as manufacturing, energy, and financial services.

      Cultural transformation is also progressing. Business leaders are embedding continuous learning into corporate strategy and encouraging open dialogue about AI’s impact on work and skills. Many organizations are promoting cross-functional collaboration and upskilling as core elements of corporate identity — recognising that the ability to attract, train, and retain talent will determine long-term competitiveness.

      ESG

      CEOs indicate that sustainability and technological progress are interlinked

      Saudi business leaders are increasingly embedding sustainability into the fabric of business strategy, reflecting both national ambition and market maturity. Over three-quarters of our respondents (76%) in Saudi Arabia report that their sustainability objectives are fully aligned with core business strategy — a rate far above the global average of 44%. Meanwhile, 92% express confidence in their ability to meet evolving ESG regulations and reporting requirements, underlining growing sophistication in governance and compliance.

      CEOs view ESG not simply as a compliance requirement but as a lever for competitiveness and innovation. This mindset reflects the Kingdom’s broader transformation under Vision 2030, where sustainability is integral to economic diversification, infrastructure investment, and social progress. From giga-projects such as NEOM and Red Sea Global to industrial decarbonization initiatives at Aramco and SABIC, sustainability performance is being embedded into core operations, procurement, and capital allocation.

      AI and data analytics are increasingly critical to this transition. 88% of CEOs in Saudi Arabia believe that AI will play a pivotal role in advancing decarbonization and sustainability outcomes, compared with 78% globally. Across sectors, companies are using AI to enhance energy efficiency, monitor emissions, improve environmental reporting, and identify opportunities for circular innovation. These technologies are helping bridge the gap between ambition and execution, turning ESG targets into measurable performance metrics.

      The Saudi Data & AI Authority (SDAIA) is central to effort of driving coordination between government, industry, and academia. Its role in fostering AI readiness and regulatory clarity provides a strong platform for scaling sustainability solutions across the economy. Saudi CEOs’ confidence in meeting ESG goals is therefore grounded in both corporate strategy and institutional alignment — reinforcing the Kingdom’s emergence as a leader in responsible innovation.

      Connect with us

      Abdullah Al Fozan
      Dr. Abdullah Hamad Al Fozan

      CEO

      KPMG Middle East

      emilio-pera
      Emilio Pera

      Deputy CEO - KPMG Middle East | CEO - KPMG Lower Gulf

      KPMG Middle East

      Methodology

      About the KPMG 2025 CEO Outlook

      The 11th edition of the KPMG CEO Outlook, conducted with 1,350 CEOs between 5 August and 10 September 2025, provides unique insight into the mindset, strategies and planning tactics of CEOs.

      All respondents oversee companies with annual revenues over US$500M and a third of the companies surveyed have more than US$10B in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 12 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, healthcare, insurance, life sciences, manufacturing, technology, and telecommunications).

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