UAE to remain top performer in Gulf economy, official says

Despite the global economic challenges faced by many markets in 2023, the economic outlook in the Gulf Cooperation Council (GCC) and the UAE remains robust, a senior official has said.

“Forecasts for the UAE, in particular, suggest that it will emerge as the top-performing economy in the GCC in 2024, experiencing an overall GDP growth of 4.0 per cent,” Arindam De, Deputy CEO and Managing Director, Protiviti Member Firm for the Middle East region, told Khaleej Times in an interview.

Excerpts:

What are the anticipated key trends shaping the UAE and GCC business landscape in 2024?

Projections for 2024 indicate a notable upturn in economic growth for the GCC countries, driven in part by a resurgence in global oil prices after a prolonged period of uncertainty.

Forecasts for the UAE, in particular, suggest that it will emerge as the top-performing economy in the GCC in 2024, experiencing an overall GDP growth of 4.0 per cent. Notably, sectors such as Travel and Tourism, hospitality, sports, and entertainment have experienced unparalleled growth, surpassing initial projections in terms of spending. The public sector’s ongoing digital transformation will stay in the spotlight, with a focus on enhancing liveability, citizen experience, and attracting high-demand talent as pivotal factors. The Digital Transformation market is poised to exhibit significant growth, with an anticipated Compound Annual Growth Rate (CAGR) exceeding 25% from 2024 to 2030. Following the conclusion of COP28 in Dubai, there is a pronounced commitment to sustainability and a circular economy, with an increased emphasis on these aspects. Furthermore, a surge in infrastructure initiatives, including smart cities and giga projects, is anticipated. The entrepreneurial ecosystem in the region is poised for flourishing growth, with startups expected to play a crucial role in driving innovation and contributing to overall economic expansion. Overall, 2024 holds promise for the GCC and the UAE, with a positive economic trajectory across various sectors.

Are industry sectors expected to be particularly promising or challenging in the upcoming year in the UAE and GCC?

In 2024, notable growth is expected in the travel and hospitality, infrastructure, and logistics, as well as sports and entertainment sectors, building upon the momentum generated in 2023. The fields of renewable energy, FinTech, e-commerce, healthcare, and education are poised to attract substantial investments, with the UAE and Saudi Arabia taking the lead. The manufacturing sector in the Middle East is set for expansion in 2024, with significant investments from countries such as Saudi Arabia, the UAE, and Egypt aimed at bolstering their manufacturing capabilities to diversify their economies. Nevertheless, traditional industries may encounter persistent challenges, necessitating a strategic pivot towards diversification and innovation to align with evolving market dynamics. Sectors characterized by intense competition and reliance on low-cost labor may confront digital disruption due to automation and evolving labour laws.

How can consulting firms tailor their services to meet clients’ needs in these sectors?

Consulting firms need to tailor their services to cater to industry-specific needs, incorporating expertise in digital transformation, emphasizing global insights, offering solutions for risk management, and assisting clients in navigating regulatory changes. It is crucial for these firms to maintain flexibility and adopt a proactive approach to meet the unique requirements of clients within evolving sectors.

To remain relevant and capitalize on opportunities, three key factors come into play :-

• A comprehensive understanding of local industry dynamics, including the regulatory landscape, trends, risks, and opportunities, coupled with the ability to integrate global expertise and insights from leaders and peers in other markets.

• The capability to provide multi-disciplinary skills in a cohesive manner, supported by technology and data-enabled integrated solutions, to address the complex challenges faced by clients in their current business landscape.

• A strategic focus on investing in talent acquisition and development, fostering a culture of innovation, maintaining agility and adaptability, and building a complementary ecosystem of partnerships that can be leveraged on demand.

Can you provide insights into Protiviti’s strategic initiatives or planned expansions in the UAE for 2024?

There are three primary avenues through which consulting firms can contribute to responsible business practices: by assisting clients, promoting thought leadership, and leading by example. In supporting clients, consulting firms play a crucial role in ESG (Environmental, Social, and Governance) initiatives. As advocates for responsible business practices, consulting firms encourage ESG integration among clients, produce thought leadership content to raise awareness and influence industry practices, and engage in collaborations and initiatives with other firms, NGOs, and government agencies. Leading by example, consulting firms embed ESG principles into their core values and strategy, implement sustainable practices to reduce environmental impact, promote diversity, equity, and inclusion, support employee well-being, and actively engage with local communities through partnerships and community development initiatives.