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Many companies across the Middle East may increase headcounts or just leave it unchanged this year. However, the overall focus will be on implementing cost-effective measures, a new survey revealed.
The majority of CEOs in the region (77 percent) polled by Pricewaterhouse Coopers (PwC), said they plan to make “operational efficiencies” over the next 12 months to improve performance. However, 77 percent also said they expect headcount to increase or remain unchanged at the same time.
“This nuanced picture suggests that the drive for efficiency is as much about getting in shape to seize future opportunities as surviving current difficult market conditions. Corporate sustainability is the focus, not rash cost-cutting,” PwC said in a statement.
The findings were some of the highlights of PwC’s 23rd Annual CEO Survey. A spokesperson for PwC told Zawya that a total of 1,600 chief executives globally were included in the study, including 50 in the Middle East.
The study also found that 9 out of 10 of the region’s CEOs are worried about geopolitical uncertainty. Despite their concern, most of them (66 percent) are confident about their company’s revenue growth in the next year and 74 percent are bullish about the next three years.
There is also a drive to expand global presence amid uncertainty, with nearly half (47 percent) of CEOs in the region saying they expect their companies to enter new markets this year.
“CEOs in the Middle East are surrounded by uncertainty. Whether it’s geopolitical, economic or technological, business leaders are navigating this instability and overcoming obstacles through efficiency, talent and technology,” said Hani Ashkar, PwC Middle East territory senior partner.
Organisations in the region have been implementing cost-cutting strategies to save on operational costs amid challenging economic conditions, leaving several employees out of work in the process.
Recruitment specialists had said that they expect job cuts to slow down and hiring activity to pick up this year.
According to Gareth El Mettouri, associate director of Robert Half UAE, companies in the UAE will still be opening vacancies for certain roles that will help them meet their targets this year, particularly in the area of automation and artificial intelligence (AI).
“Businesses in 2020 are having to adapt to several factors, including automation and AI, geopolitical change, and the ongoing skills shortage, all while they strive to improve operational performance and return on investment,” El Mettouri told Zawya.
“With the World Expo 2020 on the horizon, the retail, hospitality and leisure sectors are seeing a boost in confidence, as final preparation is underway, including additional operational spending, and the job creation connected to it,” he added.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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