Gulf CEOs optimistic about tech disruption
MANAMA: A majority of chief executives in the GCC are more optimistic about technological disruption than their global counterparts, according to a new survey by KPMG.
The 2017 Gulf Co-operation Council (GCC) CEO Outlook Survey report found that instead of being disrupted by competitors, 82 per cent of CEOs in the Gulf thought their own organisations were actively disrupting the sector in which they operated.
As many as 92pc believed that they were effective at sensing market signals, while 68pc said their company was keeping up with new technologies.
“The 2017 GCC CEO Outlook Survey provides valuable insight on the market trends and challenges faced by CEOs in the Gulf region,” said KPMG in Bahrain managing partner Jamal Fakhro.
“With the increasing demand to deliver results, innovation and technology have become strategic priorities for organisations to stimulate business growth in the digital era we live in.”
Nearly all GCC CEOs were confident that their organisations would grow over the next three years.
Seven in 10 CEOs were expecting increases of 2pc to just under 5pc growth, with a further 5pc anticipating 5pc growth or more.
Interestingly, although most CEOs said they will be treating cyber security as a priority in the coming three years, they were not overly concerned about the threat.
Most believed that such a risk prompted innovation in products and services, and all said they were prepared for a cyber event.
GCC CEOs also outlined some of the challenges to managing customer relationships in their respective industries, and these were largely centred around keeping up with a fast-changing market.
The top challenge, reported by 30pc of CEOs was inability to target millennials who want to interact with brands in different ways.
But nine out of 10 CEOs believed they were able to confidently communicate how their company created value for their customers.
Seven in 10, however, thought the depth of their customer insight is hampered by lack of quality customer data.
“Although the surveyed CEOs are anticipating disruption due to changing market conditions, such as the introduction of value-added tax (VAT), they are currently taking necessary steps to respond successfully and create operational efficiencies. This growing confidence in their ability to adjust to a new reality is indeed an excellent sign of maturity for the GCC region,” added Mr Fakhro.
The 2017 GCC CEO Outlook Survey is based on more than 100 face-to-face interviews of chief executives from across the Gulf states, covering a broad range of key industries.
The sample reflected the Gulf region’s economy as a whole, as the majority of CEOs worked for public companies.
GCC CEOs were also polled in the Global CEO Survey from among more than 1,200 global CEOs.
