BrazilCooper Fitch CEO Report: GCC chiefs foresee growth in 2025
CEOs in the GCC region are largely optimistic in their outlooks for growth in 2025, despite some lingering concerns around talent acquisition and retention. A report from Cooper Fitch reveals that over 9 in 10 CEOs anticipate more revenue growth in the coming year.
The GCC is home to some of the fastest growing economies in the world. The positive sentiment from GCC executives is underpinned by forecasts of 3.6% GDP growth across the region, driven by economic diversification and strong non-oil sector performance.
Cooper Fitch’s report gathered insights from senior executives across key industries including finance, consumer goods, real estate, manufacturing, and hospitality. The majority of CEOs foresee revenue increases, but growth expectations vary between the region’s powerhouses.
For example, 96% of surveyed Saudi executives expect more growth going forward, compared to 88% in the UAE. For their part, UAE executives predict growth of 11% to 20%, while their Saudi counterparts anticipate more conservative growth in the 5% to 10% range.
Growth strategies
When asked about their primary growth strategies for 2025, CEOs highlighted product and service expansion (34%) and new market penetration (17%). Digital transformation has also seen a significant surge in priority, with 20% of CEOs now considering it a top strategy, a substantial increase from just 8% last year. Interestingly, cost-cutting remains a low priority, indicating a continued focus on investment-led growth across the GCC.
Despite this general optimistic outlook, there are still some challenges. Nearly half of CEOs pointed to recruitment and retention of talent as their biggest obstacle to growth. This concern was common in both the UAE (41%) and Saudi Arabia (45%).
The report also shed light on evolving compensation strategies. Long-term incentive plans (LTIPs) are gaining traction, particularly in Saudi Arabia where 56% of CEOs now receive them, compared to 35% in the UAE.
Bonuses
Short-term bonuses also remain a key component of executive pay, with 83% of CEOs saying they expected a bonus for their 2024 performance. However, fewer executives are seeing larger bonuses compared to the previous year. Bonuses were higher in Saudi Arabia than in the UAE.
Priority shifts
In a notable shift in non-financial priorities, digital transformation has overtaken customer service as the primary focus for 24% of CEOs. Meanwhile, diversity and inclusion efforts are now lower on the agenda compared to the previous year. Environmental, social, and governance (ESG) strategies continue to gain momentum, with a significant majority of CEOs reporting implementation or active development.
The GCC has long been a leader in the energy industry, home to enormous oil reserves and the world’s largest energy companies. In recent years, however, countries like Saudi Arabia and the UAE have been working hard to diversify their economies into other areas, an effort that has spawned healthy tech, finance, and tourism sectors.
Overall, the report paints a picture of confident executives navigating a dynamic business landscape. While talent challenges remain a key concern, strong growth projections signal a positive outlook for the region’s economies in 2025.
