Across the dynamic expanse of the Middle East, businesses are charting a course of unwavering optimism amidst the tides of disruption. While a rapidly evolving world presents its share of challenges, a remarkable 80% of companies in the region remain confident about their own prospects, with an even higher 85% holding an optimistic view of the overall economic outlook. This robust spirit is revealed in the latest findings from AlixPartners’ Disruption Index (ADI), an annual survey of over 3,000 global CEOs and executives.
Regional CEOs stand out for their proactive approach to disruption. Unlike their global counterparts (75%), nearly all (90%) believe their leadership style thrives in turbulent times. They are taking action to navigate disruption, with 80% developing action plans and scenario analyses, and prioritizing revenue growth and core business strengthening over chasing new ventures.
While disruption has been high (68%), companies are adapting swiftly. Over 60% are actively changing their business models, demonstrating a strong commitment to transformation. This is even more impressive considering the region’s workforce challenges. A significant 85% say the pace of change is outpacing employee skillsets, and 80% find their employees resistant to change (compared to global averages of 58% and 55%, respectively). However, positive visa reforms offer hope for talent acquisition and retention.
Digital adoption is a key area of focus, with investments exceeding global averages by more than 5 points. AI and automation are seen as the primary disruptive forces (87% as compared to 46% globally) and 64% plan to prioritize digital transformation for future growth. Process automation, seen as crucial for leveraging technology, is twice as prioritized as the global average. Interestingly, return on investment remains the top consideration for technology investments, followed by ease of integration with existing systems.
“The Middle East is a unique region where the threats and opportunities of disruption are starkly visible,” comments Gabriel Chahine, Middle East Leader at AlixPartners. He highlights the proactive investments in education, infrastructure, green transition, and digital technologies undertaken by both governments and businesses, placing the region at the forefront of forward-thinking adaptation.
The rise of generative AI holds both excitement and concern, but Middle Eastern companies are embracing its potential, aligning with their governments’ visions. Chahine notes that “successful adoption can lead to massive productivity gains, new revenue streams, and job opportunities, ultimately making those organizations the disruption era’s champions.”
