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The latest KPMG UAE CEO Outlook report has confirmed that CEOs in the UAE are backing their companies to thrive, despite declining confidence in the global economy. Ninety-six percent of them expressed confidence in their sectors’ growth and prosperity in the UAE, compared to 79% in the Middle East. The report, which surveyed 1,325 CEOs worldwide, also showed that 72% of CEOs are confident in the economic growth prospects, despite declining confidence in the global economy.
This optimism is mainly due to confidence in the leadership and government policies. The country’s positive economic outlook is also supported by its thriving sectors, such as tourism, and continued economic expansion, which places the country in a high position in terms of safety and security. In addition, the UAE has advanced three places, to rank seventh globally, in the Global Competitiveness Report.
With GDP growth forecast to reach 4.1% by 2025, the UAE continues to strengthen its role as a regional leader in technology, sustainability and economic diversification, with 100% of UAE CEOs expecting to increase their headcount over the next three years, compared to 92% globally, reflecting the rapid growth of the economy and the growing need for employment.
The continued focus on Emiratisation is expected to drive growth in the private sector, with 68% of CEOs believing that investing in skills development and continuous learning is essential to ensure the sustainability of future talent.
More than half of CEOs (56%) in the UAE expect a significant return on ESG investments within three to five years, compared to 55% globally. This reflects the alignment of CEOs in the UAE with the national sustainability agenda and global trends in driving corporate strategies.
However, the report highlighted that most global and local CEOs expect they will need to balance centralized and decentralized strategies in response to geopolitical challenges and climate change.
The UAE’s stable economy, supportive business environment and government focus on innovation and sustainability have contributed to long-term business prosperity. Nearly half of CEOs in the UAE were found to have a high appetite for M&A, compared to just 28% in the Middle East.
Emilio Pera, Senior Partner and CEO of KPMG Lower Gulf, said: “The UAE is at the forefront of the regional economic and technological transformation, driven by its commitment to innovation, sustainability and a diversified economy. Our report reveals that local business leaders are more confident than their global counterparts.
The adoption of artificial intelligence and environmental, social and governance (ESG) investments continue to be top priorities for UAE CEOs, reflecting the critical role these investments will play in driving future growth. Similarly, Emiratisation not only promotes a more inclusive economy, but also contributes to the country’s stability and long-term growth prospects.
