View From the Gulf: C-Suite Survey Shows Rising Optimism

The Middle East's Gulf region is emerging from the shadow of the global financial crisis with a strong sense of confidence as business leaders set priorities for bolstering their competitiveness on the world stage.

This rising optimism is among the findings in the second Oliver Wyman/Zogby International survey of 134 C-suite executives in Qatar, Saudi Arabia, and the United Arab Emirates. The survey, conducted in April and May 2010, offers a snapshot of post-crisis business sentiment in the Gulf Cooperation Council region, a dynamic, highly interconnected part of the world where such data are rare.

Across the GCC, 58% of those surveyed say they find current business conditions improved, and 82% are optimistic about the prospects for the next two years. In the UAE, where the effects of the crisis were especially pronounced, there was a dramatic increase in confidence, with 74% expecting improved business conditions in two years — up 29 percentage points from the previous survey in October 2009. 85% of those surveyed in Saudi Arabia say they expect improvement in two years, up 19 points; the level of two-year optimism in Qatar rose 13 points to 96%.

While GCC executives are upbeat, they are also clear-eyed about obstacles. Concerns about labor issues, for instance, are rising. 41% of respondents believe labor reform is an issue requiring immediate attention, up 12 percentage points since the first survey. Education reform tops the list of long-term concerns — up 15 points to 36%. (See the chart below.)

To make the region more competitive, senior GCC executives are generally looking at home and to the developing world: 46% say that diversification within GCC economies is the greatest opportunity to build competitiveness, and more prefer to pursue partnerships with BRIC nations or developing economies (28%) than with developed ones (4%).

The next Oliver Wyman/Zogby International survey of GCC executives is planned for fall 2010.

More details from the GCC executive survey >


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Oliver Wyman in the Middle East

Oliver Wyman's Dubai office allows us to deliver unrivaled knowledge and expertise to clients in Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, the United Arab Emirates, and beyond. With a focus on the financial services, aviation, telecommunications, transportation, and energy sectors, we support our clients in a broad range of assignments, including growth, reorganization, and turnaround strategies; new business planning and startup support; post-merger integration of global acquisitions; and design of new corporate governance structures.

Oliver Wyman will open offices in Riyadh, Saudi Arabia; and Abu Dhabi, United Arab Emirates, during 2010.