The YouGov and McGill Consulting Group GCC Business Confidence Index gives insights into what the future may have in store.
The Q2 BCI report reveals KSA is leading the GCC countries as the most optimistic market in Q2 2012 followed by Oman, Qatar, UAE, Kuwait and Bahrain. Revenue growth and new investments top the list of the highest level of optimism across all GCC countries. Saudi, Qatar and Bahrain are the most positive about future revenue growth. While Oman, Saudi, and Qatar are most optimistic about new investments. Flipping the coin to the other side, competitiveness and operating costs top the agenda of challenges ahead. Decision-makers in Qatar have the most concerns when it comes to competitiveness; due to aggressive competition for overseas investments and a limited domestic economic capacity to accelerate growth. Operating costs are a relatively equally burdening issue for GCC firms.
Executives in the consumer product sector are most optimistic especially in terms of revenue growth. They foresee new investment and access to a variety of sources of finances fueling profitability. However challenges in finding qualified talent linger as a growth barrier for the sector. Telecoms although a traditional sector are optimistic about revenue growth due to the introduction of new technologies driving usage rates; yet concerns in attracting and retaining talent is still an issue.
In contrast, the professional services industry is most pessimistic in the GCC. High operating costs, and limited financing options to manage payment irregularities have resulted in a difficult operating environment. This combined with a highly competitive landscape, due to low barriers of entry, and excessive cost skimming, present very challenging times ahead.
When it comes to growth, Saudi executives are the most optimistic about increasing revenue and availability of multiple sources of finance. This includes several sources driven by recent changes in fiscal policies by the government. Equally executives said competition and high indirect operating costs are difficult to anticipate and manage.
When it comes to the geo-economic landscape nearly 31% of executives are reasonably less concerned with the geopolitical situation in the Middle East. While half are closely monitoring the current situation to reassess the commercial risks and implications this may have on future operations. Mounting concerns are also surfacing among executives about the ailing global economy.
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YouGov – Middle East & North Africa:
YouGov is a full service market research agency, with proprietary online panels, that covers the entire MENA region, Pakistan and India. As part of the YouGov group of companies, we endeavor to provide our clients with the appropriate custom or product research solutions, depending on their exact requirements. As well as being the Middle East’s most quoted research agency, due to quality of our work & the experience of our researchers, we are seen as the region’s premier Qualitative and Quantitative research suppliers. For more information please visit www.yougov.com