61% of Middle East CEOs confident about regional growth prospects in 2023

About 61% of Middle East chief executive officers (CEOs) expect the region's economic growth prospects to improve in 2023, according to the 26th edition of the global CEO survey by PwC. The survey polled 4,400 CEOs across 64 countries.

A total of 63% of CEOs in the Middle East expect their companies' revenue will grow over the next year, with 71% of senior executives expecting positive growth over the next three years.

In contrast to the positive expectations for the region's growth, a majority, i.e., 73% of global CEOs and 82% of regional CEOs expect a decline in global economic growth over the next year.

Merely 21% of North American CEOs and 18% of European CEOs are confident regarding their own markets.

Macroeconomic volatility along with geopolitical tensions are influencing global CEOs' expectations for the year ahead, as per Hani Ashkar, PwC Middle East Senior Partner.

Push towards regional economic growth

Preparation for growth has already begun, with 58% transforming and stepping up their businesses through product and service diversification, according to the survey.

Regional players are accelerating their mergers and acquisitions (M&A) activity. Survey findings show that 76% are not delaying deals versus 60% of their global peers. Additionally, 58% of regional CEOs continue investing compared to 40% of global CEOs.

The region, especially Saudi Arabia and the UAE, is seeing momentum in market activity.

Companies are also focusing on enhancing supply chain and related efficiencies; 70% are aiming to push through price increases, and 84% want to reduce the overall operating expense.

In comparison to under half of global CEOs, two-thirds of the region's CEOs believe that technology-driven disruptions will contribute to profitability over the next ten years.

More than four in five CEOs from the region look forth to investing in automation processes as well as systems this year. A total of 66% are expecting to avail of advanced technologies such as cloud technology and artificial intelligence (AI) in operations.

Another key area of focus is talent attraction and retention; 74% of the region's CEOs envision reskilling their workforce, and 84% aim to avoid the reduction of staff compensation.

Further, to improve the region's aim to tackle the climate crisis, an estimated 50% of Middle East CEOs are taking steps to reduce climate risk and coming up with novel products and processes to cut emissions and reduce their carbon footprint.

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