91% of CEOs Have Confidence in the Growth of the UAE Economy

Executives in the UAE continue to display strong confidence in the local economic outlook, with 91% anticipating economic growth in the Emirates over the next year. This reflects ongoing optimism among business leaders, according to the 29th Global CEO Survey – UAE, published by PwC Middle East.

This confidence among executives indicates a robust desire for innovation and the UAE’s capability to attract capital and talent. Business leaders are persisting with investments despite global uncertainties, geopolitical risks, and tariff pressures.

The survey results highlight how executives are benefitting from strong capital inflows, stable policymaking mechanisms, and the rapid adoption of artificial intelligence to achieve sustainable growth.

Sustainable Value

Hani Ashkar, a principal at PwC in the Middle East, stated, “The results from the UAE indicate a confident business community focused on creating long-term sustainable value.”

CEOs are intentionally deploying capital, expanding the use of artificial intelligence, enhancing cybersecurity, and seeking strategic investments that build capabilities and foster resilience.

The emphasis is on investments that enhance adaptability and enable organizations to compete in a world characterized by increasing volatility.

Corporate Performance

The UAE ranks among the top 10 global investment destinations for CEOs, and companies operating there have demonstrated stronger financial performance compared to their global counterparts, achieving an average revenue growth of 13% in the current fiscal year, compared to 8% worldwide. Net profit margins reached 14%, surpassing the global average of 10%.

The adoption of artificial intelligence in UAE businesses is significantly higher than global averages, with 85% of CEOs reporting a supportive corporate culture for AI implementation, while 75% confirmed having a clear roadmap in this domain.

Mergers and acquisitions remain in high demand, with 74% of UAE CEOs planning to undertake one or more acquisitions in the next three years, a rate that clearly exceeds the global average.

There is an increasing focus on deals that build capabilities, including access to modern technologies, talent, data, and high-growth sectors. Nearly 70% of CEOs in the UAE indicated that their organizations are already competing in new sectors as part of a deliberate diversification strategy aimed at creating long-term value.

Cybersecurity Risks

Cybersecurity risks and geopolitical uncertainty are major challenges facing CEOs in the UAE, necessitating decisive action. About 60% of them plan to enhance cybersecurity within their organizations over the next three years, while 36% are looking to restructure supply chains and reduce reliance on foreign technology, reflecting a proactive approach to safeguarding value.

Despite these risks, investment confidence remains strong; two-thirds of UAE CEOs indicated that geopolitical uncertainty has little to no effect on their appetite for significant investments, with a similar proportion expecting tariffs to have a minimal impact on profit margins.

The findings from PwC’s 29th Global CEO Survey reflect a leadership agenda focused on making more precise investment decisions, responsibly expanding AI adoption, and building and maintaining capabilities through partnerships and strategic deals, while preserving sufficient flexibility to respond swiftly rather than retreating behind barriers.

Business

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