Today's Edition
MAYS IBRAHIM (ABU DHABI)
Eighty percent of CEOs in the UAE are optimistic about their company’s growth prospects over the next three years, and 84% report confidence in the national economy — above the 81% global average, according to the 2025 KPMG CEO Outlook.
This outlook is buoyed by robust domestic demand, fiscal stability, and ongoing investment in innovation and technology.
Confidence in the global economy among corporate leaders in the UAE is also higher than that of their peers elsewhere, at 72% versus 68%.
The UAE remains one of the world’s most AI-ready business environments, according to KPMG. Its research found that more than half of CEOs (52%) identify AI as a top investment priority, significantly above the global average of 34%.
Meanwhile, 92% say their organisations are prepared to deploy AI responsibly under strong governance frameworks.
KPMG views that initiatives such as K2 Think — a 32-billion-parameter reasoning model developed by MBZUAI and G42 — signal a shift in national AI strategy from building bigger models to developing smarter, more efficient systems that prioritise reasoning and open collaboration.
“Nearly three-quarters (74%) of UAE [business] leaders expect to realise returns on AI investments within one to three years, underscoring a pragmatic focus on measurable outcomes rather than distant ambitions,” the report said.
Technological transformation is being matched by investment in people. Eighty-four percent of UAE CEOs expect to increase headcount within three years, and 80% are redesigning job roles to integrate AI collaboration.
“This proactive approach reflects a wider national agenda focused on reskilling, innovation, and creating future-ready workforces,” the report said.
Its findings showed that 72% of CEOs in the UAE are investing in retraining high-potential employees, while 64% are hiring new AI and digital specialists.
“By aligning people strategy with national AI ambitions, CEOs in the UAE are ensuring that technological progress reinforces — rather than replaces — human capability. This balance between innovation and inclusion is becoming a defining feature of the country’s corporate leadership model.”
Sustainability remains closely tied to innovation in the UAE. Forty-four percent of CEOs in the country say environmental priorities are fully integrated into business strategy, and 76% believe AI will play a critical role in decarbonisation and performance transparency, the report showed.
National initiatives such as Masdar City’s green innovation zones and COP28-linked regulatory upgrades are highlighted as propellers of the private sector’s shift toward climate-aligned growth.
