TALAH TURK (ABU DHABI)
The fifth annual AlixPartners Disruption Index (ADI), a comprehensive overview, sheds light on the evolving challenges and responses within the economies of the Gulf Cooperation Council (GCC) region. Exemplifying resilience and foresight, GCC governments and businesses are among the world's leaders in forward-looking initiatives, showing no signs of slowing down when it comes to investments in education, infrastructure, the green transition, and digital technologies, the report stated.
GCC Key Findings When asked "What are your growth expectations for each of the following over the next 12 months," 80% of executives from Saudi Arabia and the UAE felt optimistic regarding their companies and industry sectors, while 85% expressed optimism regarding the economy. Despite concerns about job security, slow adaptation to change, and skills becoming obsolete, they remain optimistic. Notably, they are outpacing the global average in investments in digital tools and technologies by more than 5%.
The findings collectively highlight the resilience and proactive stance of businesses in the GCC region as they navigate through a rapidly changing global landscape.
The Situation in the Region The report described the complex situation in the region, stressing that the climate crisis is amplifying as temperatures continue to rise and rainfall diminishes intensifying climate pressures across the GCC. Against this backdrop, the imperative for zero emissions is gaining noticeable momentum, pushing the need for a transformative shift in the primary engines of the Gulf economies.
The commitment to net-zero emissions is particularly noteworthy, with most GCC countries promising to achieve targets by either 2050 or 2060.The UAE emerged as a clean energy hub, especially after hosting COP28, and its energy policy has prioritised renewables and peaceful nuclear energy as paths toward economic diversification, security of supply, and sustainability.
Looking ahead, despite the challenges, companies are actively collaborating with their governments to meet the evolving landscape head-on.