Now or never
KPMG Lower Gulf
December 2016
2016 UAE CEO Outlook
ForewordIn our increasingly globalized world, it often seems to me
that now the only constant is change. As a CEO, it is how
we respond to change – how quickly and effectively we
react and how successfully we grasp the opportunities that
change offers – that determines whether our firms are
successful.
Over the last three months, we have spoken to CEOs of
some of the UAE’s leading organizations, as well as leaders
of emerging businesses, to better understand their views
of the forces and opportunities shaping the businesses
they lead. We have spoken to key decision makers across
the UAE and across economic sectors, from Ajman to Abu
Dhabi and from automotive to building and construction.
We set ourselves the challenge of better understanding the
strategic dilemmas CEOs in the UAE are grappling with –
and how they plan to respond.
What we found was interesting. For over 40 years, KPMG
has worked shoulder to shoulder with clients – public and
private sector, small and large, start-ups and long-
established multi-national companies – and, despite the
multifaceted challenges that the region is facing, it is clear
that CEOs are positive about the opportunities they see
across the economy, especially in certain high-growth
sectors.
I must take the opportunity to thank the wide range of
CEOs who have contributed to our survey. Their inputs and
insights provide a rich platform for learning that will benefit
many CEOs in the UAE and across the wider MENA region.
I hope you find Now or never insightful and thought
provoking. If you have any questions or comments, join the
discussion on our new website (www.kpmg.com/ae),
follow us on Twitter at #CEOoutlook, or connect with us on
LinkedIn - www.linkedin.com/company/kpmg_lowergulf.
Vijay Malhotra
Senior Partner and Chief
Executive Officer
KPMG in the Lower Gulf
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Table of contents
Snapshot
Executive summary
Confidence and future growth
Transforming for the future
Possible disruptors
People and culture
Conclusions
Methodology
About KPMG
2
3
5
7
9
11
12
13
14
Now or never I 2016 UAE CEO Outlook 2
Growth
Snapshot
91 percent of UAE
CEOs surveyed –
compared to 89 percent
of global CEOs – are
expecting their
organizations to grow
over the next three
years
59 percent of UAE
CEOs surveyed see
organic growth as the
most likely source of
increasing economic
success
65 percent of UAE
CEOs indicate
revenue has
increased over the
last three financial
years.
Strategic direction
80 percent of UAE
CEOs surveyed –
compared to 41
percent of global
CEOs – expect their
organizations to be
significantly different
in three years.
22 percent of
UAE CEOs
surveyed see a
stronger client
focus as a top
three strategic
priority.
Streamlining
internal processes
is seen by 20
percent of
surveyed CEOs as
a key strategic
execution
accelerator.
Developing new
products was
selected as a top
investment area over
the next three years
by 13 percent of
surveyed CEOs
Risk
UAE CEOs surveyed
cited regulatory risk,
talent risks and
reputational risk as the
most significant threats
to sustained economic
success.
An overwhelming
two-thirds of UAE
CEOs believed they
were taking
approximately the
right amount of risk
to achieve their
growth strategies.
88 percent of UAE
CEOs surveyed
believe that a
persistently low oil
price could have
strong implications
for the UAE
economy.
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The world is changing – and it is changing faster than it ever
has. What is interesting is that the business environment
seems to be changing even faster here in the UAE than it is
elsewhere. Globally, 41% of CEOs expect to be running a
significantly transformed organization in three years’ time. In
the UAE, that percentage almost doubles to 76 percent.
Looking back over the previous three financial years, a
significant majority of our CEOs have seen an increase in
revenue. This is in spite of a lower price for hydrocarbons –
at the time of writing, oil is selling at under US$50/bbl and
natural gas is being traded at under $3/mmBTu – and a
consequent tightening of liquidity across the entire MENA
region.
Executive summary
Our interviews with UAE CEOs suggest that unabashed
optimism should be handled with some care. While a
Chinese slowdown or a change in global interest rates was
seen as having only a medium impact on the UAE, there
was near unanimity that a persistently low oil price would
significantly impact the UAE. With that in mind, while very
few CEOs expect the oil price to surge back to over
US$100/bbl – or sag to a floor of US$20/bbl – there was a
general consensus that the oil price would remain generally
in the U$40/bbl to US$50/bbl for the next 12 months – and
climb to over US$50/bbl over the next three years.
20%
34%
13%
13%
7%
13%
Revenue change
Increase - >20%
Increase - 10%-20%
Increase - <10%
Decrease - <10%
Decrease - 11%-20%
Decrease - >20%
As well as great change, we are seeing great uncertainty.
With a slim majority of UK voters opting for Brexit,
followed by the election of Donald Trump as the next
president of the United States, it is even more difficult than
usual to accurately predict the future. A previous
president, Franklin D Roosevelt, pithily pointed out in
February 1945 – before the end of World War II - that:
“This point in history at which we stand is full of promise
and of danger. The world will either move toward unity and
widely shared prosperity or it will move apart.” The
generation after Bretton Woods saw almost unparalleled
economic growth – are we about to see something similar?
Chinese slowdown
Change in global interest rates
A persistently low oil price
Impact of:
High Medium Low
Over the next dozen pages, we summarize the views of
many of the UAE’s leading CEOs on topics ranging from
the business pulse through corporate strategy to disruption
and innovation.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Y 3Y
Surge to over $100
Recover to above
$50
Stay about the same
Drop
Now or never I 2016 UAE CEO Outlook3
Predicting the oil price
““ Globally, 41% of CEOs
expect to be running a
significantly transformed
organization in three
years’ time. In the UAE,
that almost doubles to
76%.
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
What are the experts around our global network saying?
John Veihmeyer
Chairman
KPMG International
Isabelle Allen
Global Head of Clients & Markets
KPMG International
CEOs are telling us
the time for change
is now or never.
We are evolving towards a
world where what’s inside the
company and what’s outside
is not binary. CEOs can’t have
a proprietary or protective
mindset.
You can’t wait until you
have a satisfying level of
clarity, because you
might never get it.
Stephen G Hasty, Jr
Global Transformation
Leader KPMG International
To thrive in this new
environment, businesses
will need a much more
holistic, global view of their
overall tax management
over the three year horizon.
Jane McCormick
Global Head of Tax
KPMG International
Quotations taken from Now or never –
KPMG’s 2016 Global CEO Outlook
Our UAE CEO Outlook follows the
format of KPMG’s global CEO
report which was released in June
2016. For that report, we spoke to
nearly 1,300 CEOs from many of
the world’s leading companies,
located in 10 of the world’s largest
economies, to better understand
their views of the forces and
opportunities shaping the
businesses they lead.
We found that, while global CEOs
are confident in their ability to
successfully transform their
business, and to outperform the
general economic backdrop, they
also feel that the next three years
will be critical in shaping their
industry. Put simply, CEOs are
telling us the time for change is
“now or never”.
Despite the change enveloping their
organizations, and predicted global
economic challenges in the coming
12 months, these corporate leaders
are largely confident in their near-
term prospects. In fact, compared
to last year, they expressed greater
confidence in the growth of their
own company and the global
economy over the next three years.
These global CEOs are also alert to
many unfolding challenges and they
acknowledge a growing list of top
concerns, from shifting customer
loyalty to technologies that are
overturning traditional business
models. There are also a number of
additional critical issues that have
emerged recently, ranging from
cybersecurity risks to the need to
master advanced data analytics.
For more findings from our global
report, please see:
https://home.kpmg.com/xx/en/hom
e/campaigns/2016/06/ceo-
outlook.html
Now or never I 2016 UAE CEO Outlook 4
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Confidence and future growth: the future is just around the cornerAll of the CEOs we spoke to were confident that their
organizations would grow over the next three years – with
60% of CEOs confident that organic growth – such as
expanding their customer base or entering into new business
lines or geographies - would most effectively drive
stakeholder value over the next three years.
In fact, over 71 percent of CEOs express confidence that
their company, industry or the national economy will grow
over the next 12 months. 90 percent of CEOs were
confident of similar growth over the next three years. This
compares positively with results from the global survey
conducted earlier this year - 86 percent of global CEOs
expressed confidence in growth over the next three years
in their home country and 85 percent in their industry.
Despite this positive statistic – and supporting the earlier
infographic that showed that some organizations had seen a
significant drop in revenue over the last three financial periods
– there was some concern expressed by some of the CEOs
63%
31%
6%
Development plans
Organic growth
Collaborative
growth
Inorganic growth
59%
18%
18%
6%
Slow growth
Initial stages of recovery
Initial stages of recession
Recession
Where is your industry in the
economic cycle?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
UAE nation
UAE industry
UAE company
Global nation
Global industry
Global company
Prospects for growth - 12 months and 3 years
Confident - 3 years Confident - 12 months
we interviewed that their industry was in – or on the verge
of - recession. However, the general view was
considerably more optimistic.
Now or never I 2016 UAE CEO Outlook5
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Where do CEOs believe this growth is going to come from?
Given four options to choose from – new products,
customers, channels or markets – CEOs were very clear: over
half believe that new products will be the most important
source of growth over the next three years. On the other
hand, less than 10% of CEOs believe that new channels
would be important – perhaps a sign that the omnichannel
revolution that is shaking the retail industry globally has yet to
gain real traction in the UAE across a wider economic horizon.
When trying to identify issues that could impact – both
positively and negatively – company growth over the next
three years, global economic factors – such as the price of
hydrocarbons and Chinese economic growth – and
geopolitical factors – such as elections and social unrest and
instability – were the clear front runners.
CEOs are well aware that the UAE, while seen as a model of
tolerance, good governance and tranquility in the region, has
increasing competition for talent and as an investment
destination. CEOs are finding it more difficult to recruit
specialized talent as opportunities elsewhere continue to
blossom and there is greater competition for Emiratis, both
seasoned and fresh graduates, who are increasingly aware of
the need to contribute to organizations’ bottom lines.
Although only 25% of the UAE’s GDP can be directly
attributed to its hydrocarbon wealth, there are numerous
knock-on effects of a lower oil price, including the decline in
real estate sales to MENA investors. Local and global factors,
18%
6%
23%
53%
Most important source of growth
New markets
New channels
New customers
New products
This is reflected to some extent in the potential growth
areas identified by UAE CEOs, with the GCC (including the
UAE, China and Asian countries (excluding India) seen as
the geographic areas with the most potential for growth.
6%
35%
18%
6%
29%
6%
Biggest impact on growth
Access to talent
Global economic factors
Domestic economic
factors
Reputational/brand risk
Geopolitical factors
Current competitors
25%
11%
4%
7%14%
14%
9%
5%
11%
Potential growth areas
GCC
ME
Western Europe
North America
China
Asian countries
India
North Africa
Sub-S. Africa
such as ongoing disturbances in Yemen and Syria, show
little sign of being extinguished in the short term – and the
recent election of Donald Trump as president of the United
States could have unforeseen implications for the region.
““ Over half of UAE CEOs surveyed
believe that new products will be the
most important source of growth over
the next three years.
Now or never I 2016 UAE CEO Outlook 6
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The vast majority (76 percent) of UAE CEOs believe that the
organizations they are currently leading will be significantly
different organizations in the next three years – compared to
41 percent of global CEOs – and 29 percent of CEOs surveyed
for the 2015 global survey.
Transforming for the future: what’s going to change?
While there is general consistency between the top five
strategic priorities over the next three years for global and
UAE CEOs, the order is different. Fostering innovation was
the most important strategic innovation for global CEOs,
cited by 21 percent of respondents. On the other hand,
talent – ranked by 41% of UAE CEOs as a top three risk –
was only mentioned by 4% of UAE CEOs as a strategic
priority, compared to 18% of global CEOs.
This could have important consequences for the UAE. The
ability to change has been shown to have a marked effect
on revenue growth. In fact, our global survey reveals that
for 27 percent of companies that had average revenue
growth of 10 percent or more over the last three years,
fostering innovation is a top short-term strategy. In
contrast, at companies with revenue growth under 10
percent, only 19 percent of CEOs cited fostering innovation
as a strategic priority.
Strategic priorities are reflected in areas earmarked for
investment.
The UAE is increasingly a hotbed of change, with the public
sector in particular investing significantly in digitization,
disruption and improving the customer experience. The highly
successful innovation week championed by the government of
the UAE – and expanded into an innovation month from 2018 –
is indicative of the importance that is attached to innovation in
the public sector – and is something that is being inculcated
throughout society, with a particular focus on the young.
Global CEOs, perhaps in a nod to a slightly more
technologically advanced economic environment, are gearing
up to invest in the measurement and analysis of customer
experiences and needs – an area where, interestingly, the
public sector seems to be taking a lead in the UAE. Global
CEOs are also expecting to invest in geographic expansion
within their own countries and they are investing in cyber
security solutions, an indicator of the importance given to one
of the most significant risks of the fourth industrial revolution.
8%
22%
12%
4%
12%
21%
19%
18%
18%
17%
Fostering innovation
Stronger client focus
Digitizing and implementing
disruptive technologies
Talent development &
management
Stronger branding and
communications
Top five strategic priorities
Global UAE
0% 20% 40% 60% 80% 100%
UAE
Global [2016]
Global [2015]
How different will your organization
be in three years?
Largely the same Significantly different
11%
13%
7%
7%
4%
25%
24%
22%
21%
20%
Data analysis capabilities
New product development
Cyber security
Measurement & analysis of
customer experience
Geographic expansion at home
Top five investment areas
Global UAE
Now or never I 2016 UAE CEO Outlook7
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
However, there may be good reasons for UAE to have different
priorities to their global peers. 86 percent of UAE CEOs thought
their organization was at least capable over a wide range of
metrics – from generating ideas to securing the necessary
investment and resources to bring ideas to market. This clearly
has an impact on top investment areas. While global CEOs, like
their UAE peers, are contemplating investing in increasing data
analysis capabilities, developing new products and sourcing
cyber security solutions, UAE CEOs have a stronger interest in
building the profile of their business and their leaders, acquiring
business assets, and geographic expansion outside the UAE.
UAE CEOs have tremendous faith in the ability of their
organizations to move new ideas through their value chain, with
external collaboration seen as a particular strength.
However, they have a more nuanced view of their organization’s
approach to innovation – a key enabler in the global CEO survey.
Almost half of UAE CEOs say their organization has a
foundational or ad hoc approach to innovation. This means
innovation occurs on some projects or within some departments
but there is no repeatable approach, formula or standardized
tools – in short, there are few opportunities for adaptive
replication, Interestingly, only 35 percent of global CEOs felt that
their organization had a strategic approach to innovation – a small
improvement on the UAE’s 29%.
0% 20% 40% 60% 80% 100%
Generate/source ideas
Progress ideas to
commercialization
Foster culture of innovation
Create safe to fail environment
External collaboration
Organizational agility
Secure investment/resources
Organizational ability
Somewhat incapable Neutral
Somewhat capable Highly capable
Today’s top business leaders know that long-term success
requires higher levels of business agility than ever before.
43 percent of global CEOs say that the best way to deliver
faster is to streamline internal processes – double what we
see in the UAE. One reason that the figure is so much
lower in the UAE seems to be that organizations feel that
their internal processes are already streamlined – although
it may simply be that there is a lack of awareness of
leading practice.
41%
30%
29%
Approach to innovation
Foundational
Accelerated
Strategic
0%
5%
10%
15%
20%
25%
Strategic
acquisitions
Bring
customers
in earlier.
New
alliances
Restructure Hire talent Streamline
internal
processes
Top six strategy execution accelerators
““ For 27% of global companies
that had average revenue growth
of 10% or more over the last
three years, fostering innovation
is a top short-term strategy.
Now or never I 2016 UAE CEO Outlook 8
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Risks and core competences –what might affect the future?Global CEOs are more aware than ever of the risks that new
technologies pose to their organizations. In fact, from a
security point of view, some leading experts suggest that the
internet – the backbone of so much of the fourth industrial
revolution – was particularly badly catered for in the third
industrial revolution, which brought us previously unimagined
electronics, IT and automated production.
Global CEOs seem to have learnt the lessons of the third
industrial revolution – yet still have considerable trepidation
about the era we are now moving into. In the UAE, there is a
growing awareness of the risks that cyber poses – but there
does seem to be a feeling that this may be a risk that can
never be completely mitigated. In a region which is
increasingly prone to hacking and other forms of cyber crime,
this is a risk which may need more attention. The three risks
that CEOs in the UAE worry about the most are regulatory,
talent and reputation risk. The top three risks globally are
cyber (30 percent), regulatory (28 percent) and emerging
technology (26 percent). Clearly, different economic sectors
are more or less threatened by particular risks. But it is
significant that the UAE’s risk registers are so different to the
global norms.
In the banking sector globally, it is clear that some banks are
much more comfortable forging ahead into digital banking, on
the basis that they have built digitally enabled services that
have a very low risk of being compromised. The oil and gas
industry, a significant part of the UAE’s economy and the
source of much government revenue, is one of the industries
which regionally has been most affected by cyber attacks –
and one which is heavily dependent on emerging
technologies. There does, therefore, seem to be a growing
awareness of the interconnection between cyber security and
innovation.
UAE CEOs tend to feel that they are taking about the right
amount of risk in pursuit of their growth strategy. With
some of the UAE CEOs interviewed, this reflects a tension
between the board and executive management, with the
board often taking a more conservative, risk-averse view.
UAE CEOs strongly agreed – by a factor of more than two
– that their organization would be placing a stronger focus
on core competencies. However, they were evenly split
when asked about plans to divest non-core competencies,
or placing a stronger focus on growing complementary
competencies. Most CEOs believed that it was most
unlikely that their organization would significantly change
focus over the next three years – perhaps a sign of how
short a period three years can be in the lifetime of a
company.
65%
18%
6%
12%
Right amount Too much risk Not enough Unsure
How much risk are you taking?
0% 20% 40% 60% 80% 100%
Focus on core competencies
Divest non-core competencies
Grow complementary
competencies
Acquire new competencies to
enter new areas
Significantly change focus
How strongly do you agree that
your organization will:
Strongly agree Agree Disagree
Strongly disagree Doesn't apply
Third party
RegulatoryOperational
StrategicTalent
Market/treasury/interest rateFraud
GeopoliticalCyber security
Emerging
technology
Supply chain
Reputation/brand
Now or never I 2016 UAE CEO Outlook9
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
We have already seen that the hunt for talent – a perennial
issue for CEOs in the region – is likely to get more, not less,
difficult. While the UAE’s schools and universities are
producing increasing amounts of high potential human capital,
there is still a heavy reliance on expatriate labor to satisfy the
local job market.
People and culture –what’s the personal angle?
The question regarding where talent was going to come
from tended to vary, often according to the sector the CEO
represented. In sectors with a strong push for Emiritisation
and few cultural barriers, there is increasing competition
for locals, both seasoned professionals and fresh
graduates. In other sectors, where reliance on expatriate
labor is more pronounced, there was some concern
expressed regarding the source of labor – with both
regulatory pressures and competition for talent, not least
from home countries that have seen steady economic
growth – and the challenges of recruiting and retaining
skilled and trained expatriates.
There was broad agreement among UAE CEOs on the
most important ways of attracting and then retaining staff.
Three quarters of our responses came from just three
suggested answers – interesting career paths, financial
incentives and an entrepreneurial environment.
0% 20% 40% 60% 80% 100%
1 year
3 years
Headcount predictions
Increase Stay the same Decrease
There is no doubt that there is still a considerable need to hire
new talent – just under two-thirds of CEOs are expecting to
increase headcount over the next twelve month while almost
90 percent of CEOs expect headcount to increase over the
next three years. That raises at least three interesting
questions: which are the roles that are likely to be more
difficult to fill over the next three years; where is the talent
that CEOs need going to come from; and how can you attract
and then retain the talent you need?
Over the next three years, CEOs predicted a gap for specialist
skills in the research and development and strategy sectors.
With strategic skills, there were concerns about data and
analytics, cyber security, digital and innovation – continuing a
theme we have seen throughout this survey.
While financial incentives are always going to attract and
motivate an overwhelmingly expatriate workforce, CEOs
may find that developing HR competencies that can offer
interesting career paths and an entrepreneurial
environment both help negate the hunt for talent – and
reduce the cost of financial incentives.
Functional skills
— Research & development
— Strategy
27% 29%25%
17%
29%
19%
Promotion possibilities Flexible work
arrangements
Purpose-driven
organization
How can you attract and retain staff?
Attract staff Retain staff
Strategic skills
— Data & analytics
— Cyber
— Innovation
— Digital
Now or never I 2016 UAE CEO Outlook 10
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The pace of change continues to accelerate as the fourth industrial revolution ushers in the era of machine learning,
cognitive computing and artificial intelligence. The next three years will be critically transformative. This speed of
change means that CEOs need to act now.
Conclusions
Economy and the business pulse:
Most UAE CEOs are bullish about prospects for their
organization over the next three years.
While there is some concern over regional geopolitics,
UAE CEOs are confident that their organizations have the
skills and talents to benefit from uncertainty.
Most CEOs believe that the oil price, which has a
significant impact on the overall UAE economy, will
recover slightly to over US$50 – but will not (in the short
term at least) surge back to over US$100.
Corporate strategies and
business priorities:
Most UAE CEOs see a stronger client focus as a key
strategic priority. Global CEOs are more likely to focus on
fostering innovation.
While a significant number of UAE CEOs indicate that
headcounts are likely to rise, managing and developing
talent is much less of a strategic priority here than it is
globally, where 18% of CEOs cited it as a top strategic
priority.
Disruption, innovation and
data and analysis:
Most UAE CEOs believe that their organizations approach
innovation in an ad hoc manner – with innovation a less
important strategic priority than diversification or digitizing
their business.
Three-quarters of UAE CEOs think their organization will
be significantly different in three years’ time – almost
twice as many as the global response.
Transactions:
While CEOs believe their companies will be significantly
different in three years, they don’t believe they will have
changed focus. In other words, they will have innovated
how they operate, without changing what they do.
Risk:
Most UAE CEOs feel they are taking roughly the right
amount of risk to achieve their growth strategy.
UAE CEOs believe emerging technology, supply chain and
reputation are their top three risks.
People and culture:
CEOs believe that there is likely to be a significant gap for
workers with strategic skills in the short-term, including
cyber security, digital, innovation and data & analytics.
While financial incentives are seen as the most effective
way of both attracting and retaining staff, there are non-
financial methods of both attracting and retaining staff –
such as working in an entrepreneurial or collaborative
environment or offering different roles and interesting
career paths that may be at least as effective in the longer
term – and cheaper.
Despite the pace of change and the impact of global forces on local markets, the UAE is well placed for future growth.
CEOs are increasingly aware of the need to innovate and to seize opportunity in the market and many are looking
forward to a period of steady, mature growth.
Now or never I 2016 UAE CEO Outlook11
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
In addition to the countries analyzed in our global report, selected CEOs from other regions and countries around the world
were interviewed as part of our 2016 global survey. CEO concerns from around the world seem to depend on the maturity of
their economies and businesses. One of the measures of maturity is the quality of data, of utmost importance in a world
moving towards data-based decisions. Not surprisingly, a substantial number of CEOs are concerned about keeping up with
technological advances and product innovation
Top concerns of CEOs from other regions
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A
fric
a
Sw
itze
rla
nd
Taiw
an
The quality of the data I’m basing my decisions on
Whether our organization is staying on top of what’s next in services/products
Regulations will inhibit our growth
The impact of global economic forces on our business
The amount of time I have to think strategically about the forces of disruption
How millennials and their differing wants will change our business
The loyalty of our customers
Having to consider the integration of artificial intelligence and cognitive processes
The relevance of our products or services three years from now
Now or never I 2016 UAE CEO Outlook 12
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Methodology
The survey data published in this report is based on face-to-
face interviews of chief executives from across the UAE.
Key industries are represented, including automotive,
banking, aviation, insurance, risk services, real estate and
construction, retail and distribution, leisure, and media.
59% of CEOs came from companies with annual revenues
of less than US$500 million, 17% of CEOs came from
companies with revenues between US$500 million and
US$999 million, 18 % from companies with revenues from
US$1 billion to US$2 billion, and 6% from companies with
revenues of more than US$2 billion. CEOs came from family
businesses, government-related entities and listed
companies. Two of the CEOs we interviewed were female.
Nationalities of the CEOs we interviewed represent the
cosmopolitan population of the UAE and included UAE
nationals, non-UAE Arabs, Indians and Western Europeans.
The survey was conducted during the third quarter of
2016.
Figures may not add up 100 percent due to rounding.
5%
17%
39%
5%
11%
5%
6%
6%
6%
Industry sectorRisk services
Real estate and
construction
Financial services
Automotive
Healthcare
Insurance
Retail and distribution
Leisure
Media
59%
17%
18%
6%
Organization size
Less than US$500
million
US$500 million to
less than US$1
billion
US$1 billion to less
than US$2 billion
More than US$2
billion
34%
22%
33%
11%
Nationalities
Western
expatriate
Non-UAE Arab
Asian
expatriate
Emirati
Now or never I 2016 UAE CEO Outlook13
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
We are proud of our reputation for delivering cutting-edge
solutions and exceptional client value. With over 60 partners
and directors leading over 750 professionals across six offices
in the Lower Gulf, we work shoulder to shoulder with our
clients, offering independent audit, tax and advisory services
to business corporations, government bodies and not-for-profit
organizations. We are proud of our reputation for developing
our people and the wider business community. We actively
support our staff and are recognized as a leading employer.
About KPMG
Complemented by a global network of dedicated partners
and professionals located across the global network of
individual firms, our value lies in our depth of talent and the
experience we have gained helping clients respond to
industry, market and regulatory changes and challenges.
We work with our clients to adapt and capitalize on the
trends being set by today's rapidly changing environment.
With deep industry experience, insight and technical
support, our qualified professionals deliver a broad range of
audit, tax and advisory services to meet the unique needs
of our clients.
Service offerings:
Audit
An independent audit is an
important foundation for
decision-making. Our
experience matters. To
deliver global audit leading
practice, external auditors
must fully understand the
complexities of future
directions and regulatory
requirements.
Understanding the financial
performance of any
business must be placed
in the context of strategic
priorities, risk appetites
and competitive
positioning. Our
technology-enabled audit
approach applies extensive
data analytics to provide
the necessary evidence
confirming that critical
controls and disclosures
uphold the highest level of
integrity.
Management
Consulting
Our high capability
teams offer
expertise, deep
industry and technical
knowledge, and
market-leading tools
to deliver solutions
across every
business and
industrial sector. Our
expert practitioners
help clients to make
better decisions,
reduce costs,
enhance
organizational
effectiveness and
develop appropriate
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strategies.
Risk Consulting
Our risk consulting
practice combines
the knowledge and
expertise of over
100 partners,
directors and
professionals. We
help organizations
transform risk and
compliance efforts
into competitive
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applying a risk lens
to corporate
strategy. This
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and reputational
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Deal Advisory
Our experienced
investment
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opportunities to buy,
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fix a company can
add and preserve
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combine a global
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deep sector
knowledge and
superior analytic
tools to support
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Tax
A business’s approach to
tax is increasingly subject to
public scrutiny and is now a
major reputation driver.
From company set-up to
cross-border and transfer
pricing solutions, we work
with a wide range of
national and multi-national
organisations to deliver
effective tax solutions. Our
tax professionals combine
international experience
with local knowledge to
provide leading edge
commercial tax strategies
tailored to specific client
needs.
Tax issues are constantly
evolving. Changes in law,
practice, or approach –in the
UAE and globally – can have
major ramifications on local
and international
organizations.
— Audits of financial
statements
— Audit-related services
— Audit data & analytics
— People & Change
— Customer &
Analytics
— Financial
Management
— Operations
— Strategy &
Economic
Advisory
— IT Advisory
— Forensic
— Business
Process
Management
— Accounting
Advisory
Services
— Internal Audit &
Risk
Compliance
— Climate Change
& Sustainability
— Capital Markets
— Valuations
— Debt Advisory
— Transaction
Solutions
— Mergers &
Acquisitions
— Restructuring
— Inbound & indirect taxes
— Mergers, acquisitions
and restructuring
— International tax services
— Transfer pricing
— Tax management
consulting
— Global mobility services
— Automatic exchange of
information
— VAT
Now or never I 2016 UAE CEO Outlook 14
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The information contained herein is of general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide
accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one
should act on such information without appropriate professional advice after a thorough examination of the particular situation and circumstances.
© 2016 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in the United Arab Emirates.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Vijay Malhotra
Senior Partner | CEO
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Audit
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Audit
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