In Qatar, future-ready CEOs prioritise transformation and climate action

As Qatar’s economy continues to evolve, CEOs are demonstrating an optimistic outlook on long-term economic growth prospects, according to the findings of the 27th Annual CEO survey. Business leaders have also indicated an imperative to reinvent their businesses, as they proactively recognise the need to embrace advanced technologies, such as GenAI, and invest in climate innovation to ensure continued prosperity.

Aligned with the nation’s long-term plan, tech transformation is expected to be a key differentiator for leaders in Qatar. This will play a crucial role in how companies create, deliver, and capture value in the next three years. CEOs see this as a critical driver for strategic growth, enabling them to take advantage of impactful and value-creating opportunities in the country.

Buoyed by the Qatar National Vision 2030 - and the legacy of the FIFA World Cup 2022 that has played a pivotal role in boosting non-oil industries, such as real estate, hospitality, sports, and healthcare - Qatar continues to sustain a positive economic growth, creating a wealth of opportunities for foreign investors. Our survey reveals that as many as 84% of CEOs are optimistic about the country's economic growth in the next 12 months, surpassing the global average of 44% and the regional average of 73%, who feel the same way about their own economies.

^{Q: How do you believe economic growth (i.e. gross domestic product) will change, if at all, over the next 12 months in your territory?}

This positivity is also reflected in the confidence of CEOs in their own company’s revenue growth for the next 12 months, with 39% extremely confident (vs 37% globally) and 52% moderately confident (vs 32% globally). The longer term outlook is even more positive still, with 68% of CEOs feeling confident about their organisation’s revenue potential over the next three years (vs 49% globally).

Unsurprisingly, given the region’s positive growth trajectory, coupled with confidence in revenue growth, 71% of CEOs in Qatar indicated that they were likely to increase the headcount in 2024, compared to 39% of their global peers. More than half said they were likely to increase the prices of products and services, anticipating an increased market demand, and 84% of business leaders reported an increased market share of more than 5% in the last three years, significantly higher than 49% of their global peers. 

^{Q: To what extent will your company increase headcount in the next 12 months?}

Despite the spirit of optimism, business leaders in Qatar have been cautious when it comes to acquisitions. Only 29% of CEOs surveyed said that their company made a major acquisition of more than 10% of assets in the last three years. As with the rest of the region, reflected in our Transact Middle East Mid Year update, the moderate appetite indicates that deal makers are taking time before closing deals, focusing more on value creation over volume.

As the final phase of Qatar’s National Development Strategy begins this year, there is a concerted focus on greater sustained economic growth and diversification. As part of this transformation, leaders have acknowledged that there is a need to evolve and reinvent. More than half of the CEOs surveyed in Qatar (55%), believe that their company won’t be viable in 10 years if they continue on their current path. This is higher than their global average of 45%. 

In the last five years, 61% of CEOs in Qatar have embraced new technologies in order to remain resilient and agile, while more than half (58%) diversified their products and services and a similar number focused on strategic partnerships to ensure that their businesses evolve. Technological change and changes in customer preferences were the top two factors that determined how their company created, delivered and captured value in the last five years and would continue to do so in the next three years as Qatar continues to digitise, decarbonise, localise, privatise and modernise.

^{Q: To what extent have the following actions impacted the way your company creates, delivers and captures value over the last five years?}

In the next three years, 74% of Qatar CEOs (vs 68% of CEOs globally) agreed that among emerging technologies, GenAI would significantly impact their company’s competitive advantage in their respective industries, while 77% said it will improve the way the company creates, delivers and captures value. More than three quarters also indicated that embracing GenAI would require the workforce to develop new skills.  

^{Q: To what extent do you agree with the following statements about generative AI over the next 3 years?}

A greater majority of Qatar’s business leaders (87%) agreed that GenAI will increase their efficiency at work, higher than 59% of their peers, globally, while an equal number felt it would increase efficiency of employees as well, significantly, higher than the global average of 64%.

Despite the benefits of using GenAI, Qatar CEOs revealed their concern about keeping data secure. 74% indicated that cybersecurity risks were front of mind, higher than the global average of 64%.

This year’s survey has revealed a renewed determination from leaders to tackle the climate crisis, while pushing forward the region’s ambitious climate goals. CEOs in Qatar have shared similar sentiments on this topic. According to PwC’s latest Global Net Zero Economy Index, which collects data from the Middle East, Qatar's emissions have dropped by almost 9.4% since the pandemic. 

Over half of the CEOs in Qatar (55%) are improving their energy efficiency, while 42% are developing new climate-friendly products, services, or technologies, and 39% are incorporating climate risks into their financial planning, which is slightly higher than the global average. Almost a third of them (30%) are also re-skilling their workforce to prepare them for climate-driven changes in business models.

^{Q: Which of the following best describes your company’s level of progress on each of these actions?}

In another key finding, almost half of the CEOs in Qatar have accepted lower returns on climate-friendly investments in the last 12 months, higher than the global average of 41% and even higher than their Middle East counterparts (37%). This indicates a keenness in addressing the adverse effects of climate change and transition towards a sustainable future.

As Qatar advances on its journey of national transformation, CEOs must be prepared to contribute to the nation's diversification plans and capitalise on opportunities in the non-oil sectors. Building on the legacy of the FIFA World Cup 2022, leaders can continue to position Qatar as a destination for tourism and mega events, ensuring a steady global attention on the island nation.

CEOs must also implement workforce transformation strategies as they embrace GenAI and deploy strategic ways to manage cyber threats. By effectively building a cyber-secure culture that gives them a potential competitive advantage, organisations can strengthen consumer confidence and trust in their ability to process and manage data.

And finally, although half of the CEOs in Qatar are in the process of improving their energy efficiency, more needs to be done to ensure a growing awareness on this critical imperative. Leaders must implement initiatives to upskill and reskill their workforce to prepare them for climate-driven changes in business models and find ways to invest in nature-based climate solutions to lead the transition to a green future.