Middle East CEOs have voted Saudi Arabia as the most important foreign market for potential growth this year, according to PwC's latest survey.
Twenty-eight percent of the CEOs chose the Kingdom given its Vision 2030 program, while Egypt and India followed in second and third place with 15 percent and 13 percent votes, respectively.
However, regional CEOs remained "more cautious" about regional growth despite a significant uptick in optimism last year. Only 28 percent of the CEOs were "very confident" on revenue growth over the next 12 months compared to 33 percent last year, and 35 percent of global CEOs. In their medium-term growth outlook, 40 percent remained "very confident" about their revenue prospects over the next three years.
CEOs in the Middle East, in line with their global peers, prioritized operational efficiencies to remain fit for growth. Sixty-eight percent of regional CEOs put “operational efficiencies” at the top of their list of planned activities to drive profitability in the next 12 months compared with 77 percent globally.
Meanwhile, the survey found regional CEOs to be grappling with rapidly changing consumer behavior as the digital revolution takes hold at speed. Changing consumer behaviors (79 percent) and the speed of technological change (75 percent) were the most significant threats to their organization.
On the impact of artificial intelligence (AI), 91 percent of CEOs believed that AI will significantly change how they do business in the next five years, in line with the global results.
Although 43 percent have plans to start introducing AI initiatives in their organization in the next three years, only 23 percent have already introduced AI into their business, PwC said.
According to the consultancy, CEOs believe data and skills were the two things that were holding back regional organizations.
Only 13 percent compared to 41 percent among global CEOs said the quality of their company’s data is adequate for assessing the customers’ preferences and needs.
Additionally, 61 percent of regional CEOs said the lack of analytical talent was the primary reason they do not receive adequate information, the survey noted.
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