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Middle East thriving in a turbulent global business environment, report says

Digital transformation, investment in non-oil sectors, and commitment to clean energy are key drivers for growth

Middle East thriving in a turbulent global business environment, report says
[Source photo: Krishna Prasad/Fast Company Middle East]

Amid global geopolitical tensions and economic volatility, a new report by PWC Middle East shows that the Middle East’s business landscape remains robust. Its economies are charting a path of stability and expansion from strategic diversification efforts to innovative dealmaking.

PWC’s 2024 TransAct Middle East report paints an optimistic picture of the region’s business landscape and predicts continued growth despite global economic headwinds.

The key driver? A strategic shift away from oil dependence. The report highlights the region’s embrace of digital transformation, investment in non-oil sectors, and a commitment to clean energy. 

This diversification and supportive government policies have created a stable environment for investors, even as other parts of the world grapple with recessionary fears.

The report emphasizes the ongoing activity in the region’s “deal market,” where businesses engage in mergers, acquisitions, and other strategic transactions.

PwC’s analysis shows this market to be remarkably resilient, with mergers and acquisitions showing particular strength. Experts believe this trend will continue in 2024, fueled by government efforts to diversify economies.

Saudi Arabia is a prime example. The report predicts an expansion of activity in its non-oil sectors, particularly infrastructure, manufacturing, and clean technology.

“In 2023, Saudi Arabia saw less substantial declines in deal volume. IPO activity has also remained strong, and we are confident that the region will continue to see a strong pipeline coming through in 2024,” said Imad Matar, transaction services leader at PwC Middle East.

Looking ahead, the report identifies decarbonization, technology, and localization as key areas for growth. PwC Middle East experts advise businesses to take advantage of this environment by adapting their models, acquiring talent, and remaining flexible.

The Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.

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