72% of the UAE's top executives expect the UAE to grow this year, with 36% expecting strong economic growth in the UAE and the rest expecting moderate economic growth, according to a survey of 2019 global business spending projections. American Express Corporation Middle East, with the Institutional Investor Foundation yesterday.
The study involved 901 CEOs and other senior financial executives for companies with annual revenues of $ 500 million or more, of whom 180 are in the UAE, Saudi Arabia, Egypt and Bahrain.
Increased spending
Forty per cent of the respondents in the UAE expected their investment spending to increase by more than 8 per cent this year compared to last year, while 40 per cent expect their spending to rise by less than 8 per cent. Others do not expect to change their expenditures this year.
24% of respondents expected employment to increase by more than 10% this year, while 58% of respondents expected employment to increase by less than 10% while others expected employment to remain stable.
«Generation Z»
The new generation of young people under the age of 24, known as the "z" generation will change the economic trends in the world, because of technological and economic changes. Seventy-eight percent of respondents said their companies had clear strategies to attract consumers from this generation.
The study pointed out that governments in the region and foreign and local institutions are taking steps to contain this generation and provide a bright future for them, especially the UAE, which has promoted the participation of young people in government, the establishment of ministerial posts of happiness and the emphasis on artificial intelligence. And established several international universities, with branches in the UAE.
Economic growth
While regional officials are optimistic that economic growth will be caused by falling oil prices, growth prospects in the Middle East are in line with expectations worldwide, with 71% of respondents expecting a significant or moderate expansion in their home countries.
Of the participants, 72% expect their companies to grow in 2019, with 45% expecting moderate expansion and 27% predicting significant economic expansion. Most executives confirmed that their companies' global revenues would rise in 2018, and the Middle East showed strong corporate performance compared to Europe and Asia.
Despite the uncertainty about what will happen to global trade, 64% of the Middle East's top executives expect social and economic changes and global trade policy to boost the growth prospects of their companies in the near future, while only 5% of senior executives Believe that these issues will weaken prospects for growth.
This view is consistent with participants from around the world, with 66% believing that economic changes and global trade policy will strengthen the growth prospects of their companies.
Middle East Chief Executive Officer Mazen Khoury said, "Senior financial officials in the region are balancing spending to push growth higher with higher profits and are moving forward with expansion plans, which include pursuing foreign trade, employment and investment opportunities. In Next Generation Technology ».