Middle East Remains Optimistic On Growth
Senior finance executives across the Middle East remain optimistic about the economy, the outlook for their companies and their investments for the future, despite economic uncertainty, according to the 2019 Global Business & Spending Outlook, a survey released on June 18, 2019 by American Express Middle East and Institutional Investor Thought Leadership Studio.
The cross-industry findings in the joint American Express and Institutional Investor study are based on a global survey of 901 CFOs and other senior finance executives of firms with annual revenues of $500 million or more. More than 180 of these respondents were from across the Middle East region, including the United Arab Emirates, Saudi Arabia, Egypt and Bahrain. Now in its 12th year, the survey was conducted in late November and December 2018.
Senior executives say they are less likely to foresee economic growth in the region, which was 72% in 2019 vs 92% in 2018, partly due to lower oil prices. The growth outlook for the Middle East is in line with expectations worldwide. About 71% of the total response base anticipates a substantial or modest expansion in their home countries. Additionally, growth expectations within the region range from 67% of respondents from Bahrain expecting a significant or modest increase, to a high of 77% in Egypt.
Only 10% of senior finance executives from the Middle East foresee a modest or substantial contraction in 2019. Of the 72% who do expect to see growth in 2019, 45% anticipate moderate expansion while 27% anticipate a significant economic expansion. The majority of executives saw their companies' global revenue rise in 2018 and the Middle East showed especially strong firm-level performance compared with Europe and Asia.
"Despite operating in unsettled times, senior finance executives across the region are concentrating on their day-to-day business with an eye on the future," says Mazin Khoury, CEO of American Express Middle East. "While they balance spending to drive topline growth with profitability, they're pressing ahead with expansion plans. It includes pursuing foreign trade opportunities, hiring and investing in next-generation technology."
