Why corporate optimism in Saudi Arabia and UAE remains widespread despite global economic headwinds

The UAE and Saudi Arabia have committed to achieving net-zero carbon emissions by 2050 and 2060 respectively. (AFP)
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Updated 02 December 2022
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Why corporate optimism in Saudi Arabia and UAE remains widespread despite global economic headwinds

  • Survey suggests businesses are drawing confidence from governments’ ambitious blueprints
  • Climate change and sustainability issues high on the agenda for businesses in both countries

LONDON: A new survey of business leaders in Saudi Arabia and the UAE reveals widespread corporate optimism in the two countries about the coming year, despite the uncertainties and challenges that have plagued the global economy in 2022.

Overall, 70 percent of 250 decision-makers representing a wide range of sectors expressed optimism about the prospects for the global economy in 2023, with 46 percent declaring themselves to be very optimistic.




There is widespread corporate optimism in Saudi Arabia and UAE. (AFP)

The survey was carried out for Gedeon Mohr & Partners, a newly formed Dubai-based consultancy focused on the retail, entertainment, destinations, and hospitality sectors, all of which are set to play an increasingly important role in transforming the economies of the Arab Gulf region.

“It is hugely positive to see a majority of business leaders across the UAE and KSA being so optimistic about the future of the economy, recognising the vibrant business ecosystem and opportunities in the region,” said Maria Gedeon, CEO and founder of Gedeon Mohr & Partners.

There were, she said, several reasons for the robust picture of regional optimism that has emerged from the survey.

“Obviously, we’re lucky to have had an increase in oil prices, so naturally the economy is in better health than anywhere else in the world right now. Also, geographically the region is far from the Russia-Ukraine war, and less affected than Europe by higher prices and so on.

“But overall, I think the sentiment is better because of the amount of work that the two governments are putting into developing the economies, increasing quality of life, and attracting foreigners and expatriates to this part of the world.”

The survey also showed that overall 29 percent of business leaders in the two countries — 22 percent in the UAE, rising to 37 percent in Saudi Arabia  — were slightly or very concerned about what the new year might bring.




There were several reasons for the robust picture of regional optimism that has emerged from the survey. (AFP)

“I would assume that these are probably working for global organizations, because they’ve had layoffs and a lot of financial issues, and slowdowns in growth, and so on,” said Gedeon.

Businesses in the two countries are drawing guidance and confidence, she said, from the ambitious blueprints set out by governments.

“Both of these countries have published their visions, the Kingdom for 2030 and the UAE for 2031, and in Saudi (Arabia) especially the mega-projects, such as NEOM, the Red Sea project and Qiddiya, and the massive investments in infrastructure, are tremendous economic catalysts.”

In November the International Monetary Fund predicted that GDP growth in Saudi Arabia would be 7.6 percent for 2022, placing it among the top five high-growth economies in the world.

Gulf Cooperation Council policymakers as a whole, said the IMF, had “managed to quickly mitigate the economic impact of the twin COVID-19 and oil price shocks.”

Even though global commodity prices had surged, it added: “The outlook is more positive for GCC countries, with new challenges linked to Russia’s invasion of Ukraine and tighter global financial conditions expected to have a limited impact on GCC economies.”

The IMF also offered a cautionary note, warning that even as the GCC states benefit from “higher, albeit volatile, oil and gas prices, numerous risks still cloud the outlook  — notably, a slowdown in the global economy.

“In this context, the reform momentum established in previous years should be maintained … to ensure equity between generations and a smooth energy transition out of fossil fuels.”




Saudi mega-projects, such as NEOM, the Red Sea project and Qiddiya, and the massive investments in infrastructure, are tremendous economic catalysts. (AFP)

This, said Gedeon, was exactly what was happening, as Saudi Arabia works to diversify its economy and open up its society. As a senior manager with the UAE’s Majid Al-Futtaim Group, the malls to hotels, retail and entertainment giant, she had direct experience of the ongoing program of social and economic reforms in Saudi Arabia when she worked on the introduction of the group’s Vox Cinemas chain in the country.

Both of the Gulf states “will keep investing in oil, but they are keen to diversify,” she said, and one clear way ahead is “driving significant tourism to very beautiful countries.”

One thing that emerges strongly from the survey is that climate change and sustainability issues are rising to the top of the agenda for businesses in both countries. Asked how important sustainability was to their business, 90 percent of respondents in the UAE and 85 percent in Saudi Arabia said it was very important. Overall, only 2 percent said it was not important.

Climate change was also seen as the biggest threat to business in 2023 by 11 percent of respondents in the UAE, and 18 percent in Saudi Arabia.

However, more surprising, and concerning, says Gedeon, is the attitude that emerges from the survey in both countries toward the thorny corporate issue of ESG, or environmental, social and governance, a metric increasingly valued by investors and consumers as a measure of how companies impact upon, and interact with, society and the environment.




GCC policymakers as a whole, said the IMF, had “managed to quickly mitigate the economic impact of the twin COVID-19 and oil price shocks.” (AFP)

In its recent 2022 Social & Governance Report, PwC Middle East concluded that “embedding environmental, social and governance principles across all areas of economic and social evolution is essential to realizing the ambitions of our region, enabling it to become a leader on the global sustainability stage.”

In the new survey, says Gedeon, “sustainability and business growth top the agenda, yet what is clear is that while leaders care about climate change, there is still a great deal of work to do around ESG, which provides an opportunity for sustainable growth.”

The bottom line, she says, is that increasingly “consumers want to purchase from and be associated with brands that have a solid purpose, and that are doing good for the planet and the organization.

“Consumers will no longer buy a product from a company or brand that is not respecting all of these sustainability and ESG pillars, and companies that aren’t doing so will just become obsolete if they’re not transparent about their policies and procedures, about how they’re offsetting their carbon footprint.”




“It is hugely positive to see a majority of business leaders across the UAE and KSA being so optimistic about the future of the economy, recognising the vibrant business ecosystem and opportunities in the region,” said Maria Gedeon. (Supplied)

Again, government initiatives are likely to force the pace. The staging of COP27 in Egypt last month, and the fact that the next Conference of the Parties will take place in the UAE next year, has put environmental and social responsibility issues front and center in the thinking of governments, businesses and individuals throughout the region.

It is also hugely significant that the UAE and Saudi Arabia, two of the world’s biggest oil producers, have committed to achieving net-zero carbon emissions by 2050 and 2060 respectively — ambitious targets that will demand the collaboration and cooperation of businesses across every sector, and will almost certainly be legislated for.

One issue of concern that slightly overshadows the overall confidence identified by the survey is the recruitment and retention of the talent necessary for companies to perform at their best.

While overall 62 percent of business leaders felt they had the right talent in their business going into 2023, there were significant concerns about workforce challenges in the year ahead. Overall, 18 percent were worried about being able to attract talent, and 10 percent about retaining the talent they already had.

Despite the generally positive experience of remote working during COVID-19 lockdowns, a quarter of all respondents also saw hybrid working as a challenge in 2023. One reason, said Gedeon, was because of the unique nature of many of the big projects underway, especially in Saudi Arabia.

“A lot of these projects are truly remote and you need to be there, watching the project grow,” she said.

“If you’re developing on the Red Sea, it’s going to be very difficult to manage the project operating from New York, London, or even Dubai.

“So, there’s an eagerness to have people on site at projects such as NEOM, and they are building staff accommodation and even schools, making it exciting for people to work so far away from the capital and other cities.”
 


Turaif traces historical, cultural mosaic to pre-Islamic era

Updated 12 min 4 sec ago
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Turaif traces historical, cultural mosaic to pre-Islamic era

  • Evidence of Stone Age settlements in the region
  • Has Tapline, Kingdom’s first industrial heritage site

TURAIF: Located in Saudi Arabia’s Northern Borders region, Turaif governorate stands as a crossroads of ancient civilizations and a gateway to Iraq and the Levant.

The governorate is home to a range of rich cultural and heritage sites, many of which date back to pre-Islamic times.

Heritage Commission sign board at the archaeological site of Qasr Duqrah, located 40 kilometers southwest of Turaif governorate. (SPA)

Among the most prominent heritage landmarks is the archaeological site of Qasr Duqrah, situated 40 km southwest of the governorate.

Adjacent to it lies a mountain known as Aqran, also referred to as Duqrah Mount, which has been recorded under the Comprehensive Archaeological Survey Program.

Zahi Al-Khalawi, a member of the Saudi Historical Society, said the site is among the Kingdom’s most significant archaeological locations because there is evidence of human settlements dating to the Stone Age.

He said habitation at the site continued through the later Roman period (2 to 6 centuries C.E.) and persisted into the Umayyad era (661 to 750 C.E.).

Another landmark is the Trans-Arabian Pipeline, or Tapline, one of Saudi Arabia’s most significant industrial heritage sites.

The pipeline stretches from the east of the Kingdom to its north, passing through Turaif, and has been registered in the National Industrial Heritage Register.

Known as the Tapline, this oil pipeline stretches from eastern Saudi Arabia to the northwest, passing through Turaif. (SPA)

It is the first documented industrial heritage site in the Kingdom, representing the early stages of Saudi Arabia’s oil industry and its developmental and economic significance.

Also noteworthy is the culturally significant site of Qaru Turaif, a water source developed by the Tapline Co. in the 1950s to help settle nomadic communities by order of the late King Abdulaziz.

To the east of Turaif, about 25 km away, stands Jabal Umm Waal, a historic landmark and northern gateway into the Arabian Peninsula.

The mountain tells the stories of Bedouin life and the passage of trade caravans and pilgrims traveling from the Levant and Iraq. For centuries, it served as a safe route for travelers making their way southward.

 


Saudi Arabia condemns Israeli minister’s call for sovereignty over occupied West Bank

Updated 02 July 2025
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Saudi Arabia condemns Israeli minister’s call for sovereignty over occupied West Bank

  • Kingdom’s foreign ministry said the move would violate international laws

RIYADH: A government minister’s threat for Israel to apply full sovereignty over the occupied West Bank was strongly condemned by Saudi Arabia on Wednesday.

The Ministry of Foreign Affairs said the Kingdom “condemned and denunciated” the statement made by the Israeli official calling for the imposition of sovereignty over the Palestinian territory.

Such action would be a violation of international law, the statement said. Saudi Arabia rejects any attempts to expand settlements on Palestinian land, the ministry added, while reiterating the Kingdom’s position on the importance of Israel abiding by international resolutions.

The statement followed comments from Israel’s Justice Minister Yariv Levin saying “the time has come” for Israel to apply sovereignty across the West Bank.

Israel occupied the West Bank and East Jerusalem in 1967 and has built dozens of settlements, deemed illegal under international law, across the territory.

The Saudi foreign ministry offered its support for the Palestinian people in restoring their legitimate rights and in establishing a Palestinian state on the 1967 borders, with East Jerusalem as its capital.

 


Saudi ministry recalls faulty chargers over fire risk

Updated 02 July 2025
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Saudi ministry recalls faulty chargers over fire risk

RIYADH: Saudi Arabia’s Ministry of Commerce has announced the recall of 88,518 Anker portable chargers across multiple models due to a potential internal electrical short circuit that may cause overheating and pose a fire risk.

The ministry urged consumers to immediately stop using the affected products and contact Anker at the toll-free number 8008500030 to arrange a replacement or full refund, the Saudi Press Agency reported on Wednesday.

Consumers can check if their device is included in the recall and start the replacement or refund process by visiting anker.com/mmrc2506.

Users are also advised to verify the model number of their charger against the list of affected products on the Defective Products Recall Center website ecalls.sa.

The ministry reaffirmed its commitment to consumer safety and stressed the importance of promptly addressing product defects to prevent potential hazards.


GCC passports departments chiefs hold meeting

Updated 02 July 2025
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GCC passports departments chiefs hold meeting

Gulf Cooperation Council Secretary-General Jasem Albudaiwi participated in the 39th Meeting of the Directors-General of Passports of the GCC countries, held on Wednesday at the headquarters of the General Secretariat in Riyadh.

During the meeting, he reviewed the latest developments, including the Gulf visa project.

The passport departments of the interior ministries of GCC countries, through a series of joint meetings, are making efforts to launch a unified tourist visa project in the near future, the General Secretariat said in a report.

“Everyone is working as one team to keep pace with technological developments and security requirements in a world characterised by rapid change,” Albudaiwi said.


Saudi FM discusses regional developments in call with US secretary of state

Saudi Foreign Minister Prince Faisal bin Farhan held a phone call with his US counterpart State Marco Rubio on Wednesday. (AFP)
Updated 02 July 2025
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Saudi FM discusses regional developments in call with US secretary of state

RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan held a phone call with his US counterpart Secretary of State Marco Rubio on Wednesday, Saudi Press Agency reported. 

During the call, Prince Faisal and Rubio reviewed US-Saudi relations and ways to enhance the strategic partnership between their countries. The latest regional and international developments were also discussed.