Riyadh, KSA: A recent study by PwC has unveiled a strong sense of assurance among Saudi Arabian CEOs regarding the economic upswing of the Kingdom, with anticipation surpassing that seen on a global scale, as well as within the Middle East and Gulf Cooperation Council (GCC) regions.
- The Kingdom’s gross domestic product (GDP) soared past the US$1 trillion milestone in 2022 and 2023, with projections suggesting an ascent to US$1.3 trillion by 2028.
- An overwhelming 89% of business leaders in the Kingdom have conveyed their confidence in the nation’s economic trajectory, in stark contrast to the global average of 44%, regional mean of 73%, and the GCC’s 81%.
- In the realm of innovation, Generative AI (GenAI) is recognized for its potential to enhance product quality, competitive edge, and workplace efficiency.
- Climate change remains a top priority, with Saudi CEOs leading in concern (29%) compared to their regional (15%) and international (12%) peers.
The findings from PwC’s 27th Annual CEO Survey – KSA edition reveal that the strategic framework of Vision 2030 is a significant contributor to this optimism. The Kingdom has experienced a meteoric rise in the global economic rankings, achieving the 17th position by GDP size in 2022 and climbing to the 16th spot among G20 nations. The International Monetary Fund (IMF) anticipates the country’s GDP to reach US$1.3 trillion by 2028.
More than half of the CEOs have expressed extreme confidence in their firms’ revenue growth over the coming year, with 74% poised to expand their workforce in light of substantial ongoing projects and positive economic reforms.
Riyadh Al Najjar, PwC Middle East Chairman of the Board & KSA Country Senior Partner, commented on the transformative impact of Vision 2030, highlighting the shift towards economic diversification and enhanced competitiveness.
Business leaders are also cognizant of the need to evolve, with 49% acknowledging that their companies would not remain viable in a decade without significant change, aligning with the global average of 45%.
In recent years, strategic alliances have been instrumental in navigating economic transitions, fostering new insights, expertise, and collaborative innovations. Government regulations and supply chain instability have been notable factors influencing value creation and delivery within businesses.
From a technological standpoint, Saudi CEOs emphasize the importance of adapting to tech advancements and consumer preferences, which are expected to drive major shifts in business models. Cyber risks, however, pose a concern, with a significant number of CEOs acknowledging their exposure to such threats.
Regarding GenAI, more than half of the CEOs foresee improvements in product and service quality, and a majority expect GenAI to necessitate workforce skill development. They also predict that GenAI will bolster efficiency and contribute to revenue and profitability increases within a year.
When it comes to climate action, Saudi Arabia’s business leaders exhibit high levels of concern, with many actively seeking to enhance energy efficiency and innovate climate-friendly solutions. Although most CEOs are reluctant to sacrifice returns for climate investments, they acknowledge the challenges posed by regulatory complexities and the scarcity of eco-friendly technologies in their sectors.
Stephen Anderson, Middle East Strategy Leader at PwC Middle East, pointed out the importance of strategic evolution for CEOs in Saudi Arabia, citing strategic partnerships, technology adoption, and the integration of climate resilience as key factors in maintaining agility and long-term viability.