MAYS IBRAHIM (ABU DHABI)
In a show of confidence in the country's economic future, CEOs across the UAE are accelerating their business reinvention strategies, placing a heavy emphasis on AI adoption and climate-friendly investments, according to the 28th CEO Survey: UAE released by PwC Middle East.
The survey revealed that four out of five UAE CEOs anticipate GDP growth in 2025, and 90% foresee revenue increases within their companies.
A further 60% plan to expand their workforce during the same period, a figure that outpaces the global average of 42%.
AI Adoption
Artificial intelligence (AI) and climate change emerged as key propellers in the drive to future-proof business operations across the region, according to PWC Middle East.
This recent survey shows that nearly half of CEOs in the UAE believe their businesses will need to adapt within 10 years or less to remain viable.
Notably, business leaders in the UAE have been more proactive than their global peers in innovating and expanding their operations.
Over the past five years, 55% of UAE CEOs (vs 38% globally) have developed new products and services, 48% (vs 31% globally) have targeted new customer bases, and 48% (vs 26% globally) have formed collaborations to drive growth.
"AI is a key catalyst accelerating innovation and, encouraged by the UAE's leadership championing the early adoption of AI across industries, an impressive 93% of CEOs in the UAE have adopted GenAI in the last 12 months – higher than their counterparts in the region and globally," the survey stated.
Its findings showed that 70% of CEOs in the UAE who incorporated GenAI into their businesses reported time-saving benefits, while 65% saw enhanced employee productivity, 46% experienced revenue growth, and 51% saw improved profitability.
"Looking ahead, two thirds of UAE CEOs expect GenAI to boost profitability within the next year, significantly outpacing the expectations of their global counterparts. Over the next three years, 93% of CEOs plan to integrate AI into their technology platforms, 88% into business processes and 83% into the development of new products and services, leveraging AI to strengthen their competitive advantage."
Climate-friendly Investments
UAE business leaders are also aligning their strategies with the country's environmental goals.
The UAE has already made significant strides in decarbonisation, doubling its renewable energy capacity between 2019 and 2022, on track to triple it by 2030.
"Along with other GCC nations, the UAE is also taking steps to encourage climate-friendly investment. Our research suggests that green investments in six major non-oil sectors in the GCC, including transport, power and construction, could unlock up to US$2 trillion in cumulative GDP contribution and create more than a million jobs by 2030. These national efforts have inspired UAE business leaders to act," the report stated.
It also revealed that 83% of CEOs in the UAE have made climate-friendly investments over the past five years. Notably, nearly half (50%) of these leaders reported that these investments have directly contributed to increased business revenue, significantly higher than the global average of 33%.
Furthermore, 25% of UAE CEOs have accepted lower returns on these investments, the highest proportion in the region.
"This willingness to prioritise long-term sustainability over short-term returns highlights their forward-thinking approach - carefully balancing profitability with environmental responsibility for a more sustainable future," the report said.