UAE CEOs More Confident in Economic Growth than Global Counterparts, KPMG Report Reveals

UAE CEOs are showing higher confidence in economic growth and business prospects than their global counterparts, according to KPMG’s UAE CEO Outlook Report 2024. The survey found that 96% of chief executives in the UAE are optimistic about their industry’s growth over the next three years, significantly higher than the 72% confidence rate among CEOs worldwide. In the Middle East, 79% of CEOs expressed similar confidence.

The report highlights the UAE’s stable economic environment, government policies focused on innovation, and the nation’s sustainability initiatives as key drivers of this optimism. Emilio Pera, senior partner and CEO of KPMG Lower Gulf, emphasized that the UAE is at the forefront of regional economic and technological transformation. “The UAE is leading the way in innovation, sustainability, and economic diversification,” Pera said. “Our CEO Outlook Report shows that local business leaders are significantly more confident about growth prospects than their global counterparts.”

The survey, which included 1,325 CEOs globally, also found that 48% of UAE CEOs have a high appetite for mergers and acquisitions (M&A), compared to just 28% in the Middle East. This underscores the UAE’s position as a hub for business expansion and investment, with CEOs backing their companies to succeed despite global economic uncertainties.

PwC’s 27th CEO survey echoed KPMG’s findings, noting that 82% of UAE business leaders are confident that the nation’s economy will improve in 2024. This optimism is fueled by the country’s diversification efforts, focusing less on oil and more on knowledge-based industries, making it an attractive destination for investors.

The KPMG report also noted that 100% of UAE CEOs expect to increase their workforce over the next three years, compared to 92% globally, reflecting the UAE’s fast-growing economy. Emiratisation efforts are playing a key role, with 68% of CEOs believing that investing in skills development is essential to securing future talent.

Artificial intelligence (AI) and environmental, social, and governance (ESG) initiatives remain top priorities for UAE business leaders. While 76% of CEOs globally and in the UAE believe AI will not significantly reduce jobs in their organizations, 52% of UAE CEOs see generative AI as a key investment priority in 2024. Additionally, 56% of UAE CEOs expect returns on ESG investments within the next three to five years, aligning with the country’s sustainability goals.

As the UAE continues to drive economic diversification and technological innovation, its business leaders remain optimistic about the future, supported by strong government policies and a stable business environment.