UAE CEOs lead region in growth expectations and AI investment

CEOs and executives in the West are sitting on the edge of their seats. Surveys by The Conference Board and consulting groups like BCG appear to indicate that most industry leaders are using a “wait and see” strategy amid global political uncertainties and tariff and trade volatility. However, confidence across the GCC remains high, with the UAE standing out as one of the region’s most optimistic markets, according to PwC’s 29th Global CEO Survey.

Nearly all GCC CEOs say they are confident about growth in their own territories, well above global levels, even as geopolitical risk, trade disruption, and climate pressures continue to weigh on the outlooks elsewhere.

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The report cites 74 per cent of industry leaders surveyed in the UAE expect to make one or more significant acquisitions in the next three years. From the outside looking in, many are asking what’s driving that confidence and why business appears more durable in the UAE than in other global markets. According to PwC, the answer lies in a mix of economic fundamentals, trade positioning, and long-term planning that has helped insulate the region from some of the volatility reshaping global markets.

“A lot of that confidence is anchored in the region’s strong economic fundamentals, its relatively lower exposure to rising US tariffs,” said Mona Abou Hana, PwC Middle East Chief Corporate and Network Officer and EMEA Chief People Officer. She noted that 62 per cent of Middle East CEOs expect little to no change to profit margins due to tariffs. Confidence can also be attributed to the GCC’s strategic position along key east–west trade corridors.

“It is also reinforced by sustained investment in energy systems and industrial capacity, which continue to underpin long-term growth and resilience across the region,” Abou Hana said.

The survey shows executives are actively reallocating capital, prioritising acquisitions and expansions, while scaling new technologies. The average revenue growth for the last fiscal year is reported as 12 per cent in the region, according to PwC, and 8 per cent globally. Abou Hana said the focus seems to have shifted from preserving gains to building the next phase of growth.

PwC’s latest CEO survey points to a handful of themes that help explain how that confidence is playing out on the ground.

Takeaway one: Confidence is tied to investment and long-term planning

From an investor’s perspective, the UAE remains one of the more stable bets in a volatile global environment. The PWC report cites the World Bank’s forecast, which sees economic growth of about 5 per cent in 2026, edging higher in 2027, with non-oil sectors now accounting for more than three-quarters of GDP by mid-2025. The EU’s decision to move ahead with bilateral trade negotiations with the UAE also points to the country’s rising strategic weight as a trading partner, both regionally and globally.

“The country ranks among the top destinations globally for international investment and recorded foreign direct investment inflows of $45 billion, reflecting strong investor confidence in its regulatory environment, market depth, and connectivity,” Abou Hana said. “Together, this reflects a shift toward longer-term, partnership-led capital focused on building industrial capability, technology depth, and resilient value chains across the region.”

That confidence shows up clearly in revenue expectations. UAE business leaders report stronger near-and long-term growth prospects than their regional and global counterparts, with nearly eight in 10 confident about revenue growth over the next three years and 59 per cent expecting conditions to improve in the year ahead.

Ramy Jallad, Group CEO of Ras Al Khaimah Economic Zone (RAKEZ), said confidence remains closely tied to expansion on the ground.

“Across our business base, confidence in revenue growth remains strong,” Jallad said. “We are seeing sustained momentum from companies that are expanding their operations, entering new markets, and scaling production, rather than simply maintaining a presence. This confidence is evident among SMEs and industrial businesses benefiting from steady regional demand, improved market access, and a more predictable operating environment.”

Máire (Mo) Morris, chief executive officer of Morris Global Consulting, said that confidence among UAE retailers remains strong, but is increasingly shaped by execution rather than optimism alone.

“Among retailers and fashion brands operating in the UAE, there is a strong belief in top-line opportunity, driven by population growth, tourism, and the UAE’s position as a regional retail hub,” Morris said. “Where sentiment becomes more nuanced is around how that growth is achieved.”

She added, “What we’re advising is less blind optimism and more measured confidence. Brands expect growth, but they are more focused on profitability, cash flow, and execution than they were pre-2020.”

In that sense, Morris said the findings of PwC’s CEO survey mirror what she is seeing on the ground. “Confidence exists, but it’s increasingly grounded in operational readiness rather than pure market hype.”

Takeaway two: UAE CEOs are placing major bets on AI and innovation

The survey shows UAE companies are putting more weight on innovation than their regional or global peers. Nearly three-quarters said it is critical to their business strategy, compared with about half globally. More than half said they are moving quickly to test new ideas, and 53 per cent said they work with outside partners to speed up innovation. Around a third said they are willing to take on high-risk innovation projects, higher than the 25 per cent of companies globally who said the same.

The UAE ranks 30th out of 139 countries in the 2025 Global Innovation Index, and the government is stepping up its push on innovation, increasingly bringing artificial intelligence into research and development.

“Investment is being directed into technology, AI infrastructure, energy, and strengthening industrial capacity, aligned with national transformation objectives, to improve the performance of the economy,” Abou Hana said. “Around 70 per cent of Middle East CEOs report having a clearly defined AI roadmap, while 82 per cent say their organisational culture supports AI adoption (vs 69 per cent globally).”

That push is matched by investment: AI-related spending in the UAE for 2024-2025 topped Dh543 billion, with global companies announcing major projects in the country. The ambition is also visible in the way companies operate. Nearly half of UAE CEOs surveyed (45 per cent), say they are already using AI for demand generation, covering sales, marketing and customer service, well ahead of the global average.

Takeaway three: Deals and partnerships are driving diversification

The appetite for mergers and acquisitions is also picking up in the UAE. Nearly 74 per cent of CEOs expect to make at least one significant acquisition over the next three years, up from 63 per cent last year. The UAE is leading the region in M&A activity, with 95 deals recorded in the first half of 2025 across technology, industrials, and financial services.

Jallad said: “We are seeing growing activity in advanced manufacturing, technology-enabled services, logistics, and specialised industrial segments, alongside continued strength in trading and services. Many businesses are deliberately diversifying their portfolios to reduce reliance on single markets or sectors, which is translating into more resilient and scalable business models.”

PWC cites that technology, media, and telecommunications businesses are the top targets for expansion, with 55 per cent of CEOs planning to grow in this space.

“In fashion and retail, brands are not expanding for the sake of scale; they are expanding for control and resilience,” Morris said. She explained that the approach to growth is more measured than in the past. Brands are testing hybrid retail models, launching physical touchpoints to support digital channels, and entering adjacent categories that make strategic sense. Expansion is also being phased, with GCC markets prioritised sequentially.

Takeaway four: GCC leaders are building resilience in uncertain times

Cyber threats and geopolitical tensions top the list of risks for GCC business leaders, while concern over climate-related risks has doubled compared with last year. CEOs in the UAE see cyber risks as a bigger threat than their regional or global peers. Among those surveyed, 36 per cent expect their company to face cyber threats in the year ahead, compared with 29 per cent in the region and 31 per cent globally.

But leaders aren’t waiting to react—60 per cent plan to strengthen enterprise-wide cybersecurity over the next three years, according to PWC.

For UAE business leaders, the current environment isn’t just a test—it’s a chance to shape the future.

“I think success would mean UAE business leaders can look back and say they did more than navigate uncertainty,” Abou Hana said. “They used this period to reshape where and how their organisations create value.”

Put simply, UAE CEOs aren’t just surviving uncertainty. They are building businesses that can thrive no matter what comes next.