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Executives and decision makers expect to see strong economic performance across the GCC this year, despite signs of macroeconomic headwinds, according to the results of a survey by comms outfit Teneo (pdf).
UAE respondents were the second most optimistic about the region’s economic performance in 2024, with 74% expressing positive sentiment. Saudi respondents were the most bullish of the lot, with 82% confident about regional growth. Folks in Kuwait, Oman, Bahrain, and Qatar were more bearish in their outlook — albeit still mostly positive — with 53-57% of those surveyed saying they see improved economic performance this year.
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Oil prices + economic diversification to thank: The results of the survey are broadly more positive than in the firm’s 2024 CEO and Investor Outlook Survey, which reported less than half (47%) of CEOs as having a positive outlook on global macro conditions. “This more positive outlook can arguably be attributed to a resilient set of regional economic drivers, such as continuously high oil and gas prices combined with further economic diversification efforts central to the GCC’s broader and country-specific strategies,” its authors say.
IN CONTEXT- The UAE, Saudi, and Bahrain are expected to see GDP growth: Economists see that the UAE will lead the region with a 3.7% growth clip, followed by Bahrain at 2.6%, according to a Reuters poll. Meanwhile, Saudi Arabia is expected to lag behind its GCC peers at a conservative 1.3%. Meanwhile, Kuwait “faces significant financial challenges” and is expected to record a USD 19.1 bn fiscal deficit in FY 2024-25, while Oman’s diversification plans are more conservative than its larger Gulf peers, reads the report.
Attracting and retaining investments are part and parcel of economic growth, with 88% of respondents saying that potential investments will have a long-term positive impact. Some 45% of Emirati respondents — and 53% from the region at large — feel that it is more important to adopt sustainable practices to attract international investments. Another 45% cite the adoption of investor-friendly tax policies as a priority.
Most respondents expect the GCC will become a “global business and financial epicenter” within the coming 25 years, with 35% touting the Emirates as a forthcoming global business and finance center, and 39% predicting that the UAE will position itself as a model for sustainable development.
GCC policymakers are increasingly looking to tech and AI to drive regional growth: 64% of respondents feel that fully transitioning into the technological age will benefit the GCC in the next 25 years, but not without regulation. Some 82% feel that tech and AI regulations will positively impact operations in the Gulf.
Cybersecurity is at the top of the list of challenges facing GCC economies, with 25% of respondents placing it as the most difficult challenge facing growth plans in the region, and 23% of respondents feeling that their entities are not equipped to meet these challenges.
Zooming into the UAE: 54% of Emirati respondents expressed confidence in UAE entities’ preparedness to weather geopolitical tensions, while 38% saw that their firms were somewhat prepared. Meanwhile, only 8% thought their entities were not prepared.
Respondents are on the fence when it comes to talent acquisition, with 32% of Emirati respondents believing that their entities are equipped to attract top talent domestically. Meanwhile, 50% feel somewhat prepared for talent acquisition and the remaining 19% expressing unpreparedness in this area.
Survey methodology: Teneo surveyed 480 individuals it labels as decision makers, 55% of whom are in the private sector and 45% in the public sector. It says respondents included CEOs, senior VPs, board chairmen, and other senior and C-suite executives working at companies with sizes ranging between 100 and over 5k employees. The majority lead companies with 500-1k employees.
