UAE CEO outlook 2024

The United Arab Emirates (UAE) is a key player in this regional development. The UAE's real GDP is projected to grow by 3.9% in 2024 and further expand to 4.1% in 2025, as reported by the World Bank. These figures reflect the UAE's efforts to diversify its economy and invest in innovation.

The Central Bank of the UAE (CBUAE) also forecasts a 3.9% growth in overall output for 2024. Celebrating its 50th anniversary in 2023, the CBUAE has been actively working to address climate change through its Green and Sustainable Finance Initiative which aims to mitigate climate-related risks and support sustainable financial practices. During COP28 in Dubai, the UAE banking sector announced the mobilization of AED 1 trillion in sustainable finance by 2030.

In addition to its sustainability efforts, the CBUAE is advancing the digital transformation of the UAE's financial infrastructure. With the launch of initiatives like Al Etihad Payments (AEP) and the Domestic Card Scheme (DCS), Jaywan, the UAE is taking significant steps towards enhancing financial inclusion and efficiency.

The nation’s commitment to climate action was further demonstrated through its COP28 presidency. The UAE has partnered with future COP29 and COP30 hosts, Azerbaijan and Brazil, aiming to limit global warming to 1.5ºC. This partnership, called Mission 1.5ºC, will maintain momentum across successive COP conferences, enhance international collaboration and ensure the fulfillment of climate agreements.

The World Governments Summit, held in Dubai in February 2024, emphasized the importance of regional and international collaboration. It featured insightful discussions with heads of states including Turkey, India, Rwanda and Kenya, bridging the gap between today’s visions and future opportunities.

Despite the complexities of geopolitics and the global economy, there is optimism for the Gulf Cooperation Council (GCC) region, particularly the UAE and Saudi Arabia, to see a rebound in economic expansion. The UAE's projected GDP growth of 6.7% in 2025 is driven by diversification efforts and robust trade. Both oil exporters and importers in the region are also expected to see similar growth rates, with the economies of oil exporters projected to grow by 2.9% in 2024 and 4.2% in 2025.

The UAE's technology landscape is setting a global example for strategic AI adoption, prioritizing ESG and cybersecurity and advancing business technology. The nation envisions becoming a global hub for innovation, with a focus on AI, advanced healthcare and space exploration. One of the most significant initiatives is the UAE Digital Economy Strategy, launched in April 2022, which aims to double the contribution of the digital economy to gross domestic product (GDP) from 9.7% to 19.4% in the next 10 years.

Collaborations with Nasdaq giants like Microsoft and NVIDIA are also leaving a positive impact on the UAE’s economy by driving innovation and enhancing the UAE’s technology landscape. In line with the UAE’s vision of a diversified, knowledge-based economy, research shows that these initiatives are expected to contribute 19.4% to the country’s GDP within the next decade.

Emiratization remains a key priority for the UAE, driving significant progress in integrating UAE nationals into the private sector. Emiratization rates have increased beyond targets in 2023 with the successful hiring of 2,720 UAE nationals, exceeding the original objective of 1,875. The Emiratization rate in leading jobs in banks has also increased by 8% to 31% in total.

1. In the UAE, 72% of CEOs are confident about their company’s growth prospects, with 88% expecting an annual growth rate of 2.5% or more in the next three years. Similarly, 80% of CEOs in the Middle East expect their businesses to grow by more than 2.5% over same period.
2. Over half of CEOs in the UAE (56%) and the Middle East (51%) expect to see a significant return on their ESG investments within three to five years.
3. 52% of UAE leaders consider generative AI a top investment priority. CEOs in the Middle East (55%) and worldwide (64%) are also focusing on increasing their organizations’ AI spending. 
4. Most CEOs in the UAE (88%) and the Middle East (91%) expect traditional office-based roles to continue over the next three years.
5. In the UAE, 96% of CEOs in the UAE are confident about their industry’s growth compared to 79% in the Middle East.
6. 20% of local CEOs said the greatest barrier to achieving Net Zero or similar climate ambitions is the complexity of decarbonizing supply chains. 29% of CEOs in the Middle East are more concerned about the lack of appropriate technology solutions. 
7. CEOs in the Middle East (59%) and globally (63%) anticipate a 3 to 5-year return on investment (ROI) for generative AI, with 44% of UAE leaders expecting to see benefits in 5 or more years.
8. Global (87%) and Middle Eastern (75%) CEOs plan to reward employees who regularly come into the office with favorable assignments, raises or promotions. Half of UAE leaders said they were either neutral or likely to reward in-office work.
9. 48% of CEOs in the UAE have a high mergers and acquisitions (M&A) appetite, compared to 28% in the Middle East.
10. The majority of CEOs worldwide (80%) anticipate they will be required to balance centralized and devolved strategies in response to political conflict and climate change. In the UAE, 52% of CEOs agree.