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Chief executive officers in Saudi Arabia and the Gulf are optimistic about growth prospects after the implementation of various state reforms to diversify the economy away from oil and boost transparency, according to Riyadh-based KPMG’s 2017 Saudi Arabia CEO Outlook.
The report gathered insights on disruption as an opportunity for growth, shedding light on the priorities of CEOs for today.
Ninety-five percent of the Kingdom’s chief executives see technological disruption as more of an opportunity than a threat, as new technologies and business models are bound to improve business productivity and efficiency.
“Technology is playing a major role in sectors, which have survived many other disruptions and changes in the past. Companies should approach this period not only to transform day to day business and processes but also question and completely adjust their business models,” said Rayan Fayez chief executive officer of Tadawul-listed Savola Group, one of the Kingdom’s largest food producers.
Meanwhile, 83 percent of the CEOs expect public trust in businesses in the country to improve or remain the same over the next three years.
Despite the recent economic downturn, owing to falling global oil prices, 75 percent of the CEOs are confident and optimistic about growth prospects.
Nearly all CEOs surveyed are confident about growth prospects for their companies, while 90 percent are confident about their industries over the next three years, the survey showed.
Amid a changing geopolitical environment, 60 percent of Saudi CEOs think that the uncertainty of the geopolitical landscape has a greater impact on their firms more than ever, which resulted in contingency planning. They are, however, optimistic about Saudi-US relations and Brexit, which holds great hopes of boosting foreign investments.
The majority of CEOs (88 percent) are planning greater levels of investment in technologies when compared with 49 percent of their global counterparts. Blockchain, Internet-of-Things (IoT) and data analytics tools are emerging as the top-three focus areas for CEOs.
Also, 93 percent of chief executives anticipate high investment in innovation over the next three years.
CEOs are now re-evaluating their skills and qualities, as they believe that understanding their own personality and limitations is crucial to development. They are acquiring additional qualifications or courses to disrupt or challenge their roles, the report added.
Write to Rasha Abo AlSoud at rasha@argaam.com
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