• Home
• /
• Economy
• /
• Business

Businesses remain buoyant on growth, revenues in Menat

Dubai - Executives from diverse vertical industries across the region shared observations about their operations and market performance.

Markets in the Middle East, North Africa and Turkey (Menat) have provided global businesses with high growth and profitability in 2014. Senior decision makers in the region believe revenues and profits will be higher in 2015, according to the Economist Corporate Network's Menat Business Outlook Survey.
The Menat region continues to offer global businesses compelling growth opportunities, according to 150 senior executives operating in Dubai and Istanbul, surveyed by the Economist Corporate Network (ECN), the Economist Group's business advisory and peer networking programme for global executives operating in emerging markets.
Executives from diverse vertical industries across the region shared observations about their operations and market performance.
More than 75 per cent expect to report growth in revenue in 2015. Leaders of firms operating in Turkey are expecting the highest top line growth in 2015, followed by Saudi Arabia and the UAE. The Levant, while challenged by political turmoil, shows signs of market stabilisation.
Executives who oversee operations in Saudi Arabia report positive operating margins there, as did nearly all respondents in the UAE, Kuwait and Egypt. However, the highest operating margins in the region stem from Turkey.
Respondents evaluated their Menat business performance over the last year, and provided their expectations for commercial performance over the next five years. Respondents also detailed which Menat markets are receiving additional investment, and which are receiving less, due to operational challenges they face in pursuing objectives.
Executives see strategic opportunities in the Menat region, especially as growth and profitability outpace other regions and expect regional operations to double in contribution to their global operations by 2019.
Ranya Afifi, Menat director at ECN, said: "Despite lower oil prices, the Menat region is expected to report economic growth in 2015 and 2016. The Menat region is home to a fast-growing youth population of 300 million, and a total population base of over 530 million people who consume, have growing needs, and are developing their home-grown capabilities and skills.
"Meanwhile, governments are encouraging private sector participation in national investment programmes and facilitating credit facilities for SMEs. These demographics, coupled with improving business environment, will continue to bolster activity."
- business@khaleejtimes.com