Saudi CEOs 'upbeat' about Kingdom’s growth prospects: survey

Despite the global uncertainties, 82 percent of Saudi Arabia-based C-level executives are upbeat about the Kingdom’s long-term economic prospects, according to the findings of a survey by the research and consultancy firm Oxford Business Group (OBG).

According to the survey, most of the Saudi CEOs believe the Vision 2030 policy reforms will be successful or very successful in achieving medium- to long-term goals.

The survey asked more than 100 C-suite executives from across Saudi Arabia’s industries a wide-ranging series of questions to gauge business sentiment.

Manufacturing was identified by interviewees as the sector most likely to drive non-oil growth in the short to medium term, chosen by 15 percent of respondents, closely followed by tourism (12 percent).

Executives were also largely upbeat about the country’s near-term economic prospects, with 64 percent describing their expectations for local business conditions over the coming 12 months as either positive or very positive.

Significantly, just over one year on from the introduction of value-added tax in KSA, most interviewees reacted favourably when asked for their opinion on the country’s personal and business tax environments.

Four-fifths of business leaders surveyed said they thought the tax climate was competitive or very competitive on a global scale, with less than 10 percent describing it as uncompetitive or very uncompetitive.

However, respondents were also keenly aware of the impact that external factors could have on the country’s economic plans, especially challenges close to home.

Almost two-thirds (65 percent) of business leaders surveyed identified regional political volatility as the top event they felt was likely to weigh on the local economy, with slowing demand growth in China and multiple Fed rate hikes chosen by 13 percent and 7 percent of interviewees respectively.