Saudi CEOs optimistic on tech disruptions: survey

Business leaders in Saudi Arabia view technological disruption as a major opportunity and have plans to invest in emerging technologies, such as blockchain, Internet of Things and data analytics over the next three years, a recent survey found.

Nearly 95 percent of the chief executive officers participating in KPMG Saudi Arabia CEO Outlook Survey named technology as a positive disruptor.

“In today’s world, CEOs are aiming to ‘disrupt and grow’ and are also taking steps for their organizations to be disruptors in their respective sectors, instead of being disrupted by competitors,” said Abdullah H. Alfozan, chairman of KPMG MESA and KPMG in Saudi Arabia.

The survey, which offers insights into how CEOs are facing a need to transform their business models, also found that the executives are concerned that their organizations are not disrupting business models in the industry.

However, 83 percent of leaders remain optimistic about transforming their company over the next three years, Alfozan said.

According to the report, the CEOs are responding to the increased uncertainty from geopolitical pressures by promoting innovation, adopting emerging technologies and following a customer-centric approach.

Nearly 60 percent of the executives surveyed said that the current global geopolitical uncertainty influences them more than before.

“As a result, 58 percent of them resorted to re-evaluating their presence outside of their core markets,” the report said. Out of those surveyed, 95 percent said they are hiring highly skilled manpower to get a deeper understanding of geopolitical threats.

Despite the headwinds to the Saudi economy due to the decline in oil prices, the CEOs remain optimistic following the launch of government programs such as National Transformation Program 2020 and Saudi Vision 2030, the survey found.

“98 percent of the CEOs see that growth in the Saudi economy in general, and that of their corporations in particular, is on the up and up,” Alfozan said.

In terms of challenges, 73 percent of the CEOs were concerned that their organizations may not be able to update the business models that have been standard in their respective industries, even as they recognized the importance of transforming these business models.

However, the survey found that 60 percent of CEOs are optimistic about the transformation of their companies over the next three years, said Arvind Singhi, head of markets at KPMG in Saudi Arabia.