Despite current challenges, CEOs of the
world’s largest companies are embracing the positive and seeing the
opportunities in turmoil. Over half (61%) of CEOs in the Middle East expect a
stable or positive worldwide economic outlook over the next three to five
years. Arthur D. Little (ADL), the leading management consultancy firm with the
longest-standing presence in the Middle East region, elaborates on this and
many other findings in their new 2023 CEO Insights study, which englobes
insights from nearly 250 CEOs from companies worldwide with turnover of more
than $1 billion.
Thomas
Kuruvilla, Managing Partner, Arthur D. Little Middle East, said: “In the Middle
East, we see good examples of an industry’s moves to improve both efficiency
and innovation in the travel and transportation industry. The COVID crisis pushed
airlines and airports into large-scale efficiency programs to achieve major
cost reductions, impacting thousands of jobs. However, at the same time, these
companies are forming new partnerships to offer new services to passengers,
such as combined intermodal mobility offerings (e.g., bringing together
aircraft, rail, and mobility on-demand services). The next eight years will
showcase tremendous advances in new client segments in the region as more
investment is poured into reskilling initiatives for employees in the
manufacturing and energy and utilities sector, ultimately contributing to
competitive sustainability projects in the run-up to COP."
What are the
drivers of future growth?
Despite the
current energy crisis, all CEOs are focusing on innovation when it comes to
drivers of future growth. Following the global trend of new geographies, Gulf
executives will put less emphasis on diversification and disruptive offering to
focus more on new client segments. Globally, over a quarter (26%) listed technology
innovation as the most critical factor to growth, well ahead of raw
material/energy prices (11%). Factors such as supply chain, and cyber risks
both outranked raw material prices globally.
However,
there are clear regional differences:
• Environmental and climate change issues
are a key focus in Europe, North America, and Asia, but receive less attention
in other regions. Though more and more CEOs in the Middle East (7%) are
prioritising environmental and climate change as a factor in future growth, they
remain closely aligned to their global (10%) counterparts.
• Cyber risk is viewed as a key, urgent
factor by 15% of CEOs in Africa, 14% in Asia, and 13% in Middle East and Africa
(MEA)/South America, ahead of their peers in Europe and North America.
Additionally C-suite in the Middle East believe the most critical factor in
economic growth is technology innovation at 29% as compared with the global
average of 26%.
Francesco
Marsella, Managing Partner, and Global Practice Leader, Strategy &
Organization at Arthur D. Little, comments: “In a downturn, conventional business
wisdom is to cut costs and focus on survival. Despite current challenges and
many dark macroeconomic previsions for 2023, most CEOs we spoke to are
optimistic for the future working with passion, entrepreneurship, and
creativity to manage performance today while building the future. They see
opportunity in adversity, looking beyond the current crisis to embrace a more
positive future for their companies and wider society.”
Overall,
there will be a moderate need employee reskilling in the GCC for the telecommunications
industry, travel and transportation and financial services. By comparison,
healthcare (25%), manufacturing (33%) and energy & utilities (33%) see the
highest volume of reskilling endeavours in the workplace.
The Arthur
D. Little 2023 CEO Insights Study interviewed nearly 250 global CEOs leading
companies with a turnover of more than $1 billion. Study respondents are split
between key industries and geographies to give unrivalled insight into the
minds of those running the world’s biggest organizations.
