Reimagining our Region - January Issue

A round-up of our latest news, insights, and industry reports on hot topics from the region.

We start off the year with our first blog that looks at the 5 themes to watch for in 2024 and how the region’s economic climate remains resilient in the face of a slower global growth rate. 

We also explore the Saudi banking sector, and the customer sentiment on the seven leading banks in the Kingdom. 

Five GCC economic themes to watch in 2024

We kick off 2024 with our first blog. In 2023, the global economy experienced a slower growth rate, marked by high interest rates, inflation and geopolitical tensions. Nevertheless, growth in the GCC countries remained remarkably resilient and there are reasons to be optimistic about the coming 12 months.  

In our latest blog, we explore the top five forces that we believe will shape the economies of the GCC for 2024:

• Global growth to slow but GCC economy to remain resilient
• With inflation cooling, monetary easing is expected by the end of the year
• The emergence of Saudi Arabia as a tourist destination
• The transformative rise of GenAI continues apace
• The emergence of the GCC as a key player in the global energy transition

The outlook for the GCC region in 2024 is more optimistic in comparison to the rest of the world, supported by the reversal of oil production cuts, still strong international oil prices and growth in the non-oil economy. The moderation of inflation and the central banks' decision to ease monetary policy from the second half of the year will continue to add to this growth, while the tourism sector is also expected to see continued growth, particularly in Saudi Arabia.

Discover the 5 themes to watch here.

KSA banking sentiment

We collaborated with DataEQ to analyse the customer sentiment towards seven leading banks within KSA to gain a greater understanding of the consumer perceptions and experiences shaping the industry's reputation and risk profile. 

Overall, the industry shows signs of improvement, with an 11.3 percentage point increase in net sentiment compared to 2022. This uptick can be largely attributed to a 9.1 percentage point increase in reputational net sentiment that arose from media reports on positive financial results for several banks, engagement with CSI (corporate social investments) initiatives, as well as benefits and loyalty programmes. However, banks are still grappling with lingering challenges and feeling the negative impact of consumer criticisms, mainly aimed at slow service and lengthy processing times. 

Find more in our latest report here.

Middle East - How to do Business Guides

Regardless of size or experience, entering the Middle East market for the first time presents a multitude of options and challenges that should be considered. We recognise the complexity around each country’s own local regulations and the interconnectivity between their tax, legal and accounting regimes.

 We want to enable clients to focus on business development and growth and have one point of contact in their journey to achieving these goals. As part of our regional focus, we provide local market experts across multiple disciplines such as tax, legal, accounting, assurance, and consulting.

Learn how our network of specialist advisers support your journey by visiting this page.

Smart Cities World Congress in Barcelona

Last year, we took part in the 12th edition of the Smart City Expo World Congress in Barcelona as Global partners. From congress keynote sessions and panel discussions, to immersive experiences and demoing our incredible solutions across cities, mobility, livability and AI, we showcased the key drivers shaping our cities of the future. 

Our theme was centered around our new “Value in Motion” proposition which looks at five pillars in our industrial systems that need to be reconfigured to achieve a sustainable world. 

During the days of the event, we had panel discussions on digital twins and how cities can harness the power of data to transform urban living for the future. We also explored the various requirements needed for cities to accelerate the uptake of vehicles with smaller, more efficient batteries without compromising range, as we race to net zero. 

The event drew PwC and Strategy& colleagues from across our network  - from the Middle East, Germany, India, Slovakia, Spain, UK, CEE, US and Italy, who shared their expertise across a variety of city and mobility hot topics such as how Gen Z and Gen Alpha are defining the expectations of future consumers, how alternative fuels are essential for the decarbonisation of mobility, and the importance of collecting post-journey feedback in commuter-centric mobility.  

Learn more about our presence and participation here.

Amplify - our training module for new directors

Amplify, a transformative programme designed exclusively for new Middle East Directors, unfolded in Dubai this week, marking a significant investment in enhancing the skills and capabilities of emerging leaders. The programme is strategically crafted to address the pivotal shift in leadership and responsibilities as individuals transition from Senior Manager to Director roles. With a focus on upskilling, the initiative aims to empower new Directors to effectively lead their teams and evolve into exemplary leaders within our firm. 

This year, we welcomed 108 new in-grade Directors, concentrating on key areas such as strategic alignment, leadership, and career development. We continue our commitment to fostering an innovative community among our emerging leaders.

Interested in more content from PwC Middle East? Explore our website and keep checking our page for our monthly newsletter.

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