Saudi Arabia business confidence the higest in GCC: Study

04 Sep 2012

(MENAFN) A joint study conducted by YouGov and McGill Consulting Group found that Saudi Arabia was the most optimistic market in the GCC during the second quarter, followed by Oman, Qatar, UAE, Kuwait and Bahrain, Saudi Gazette reported.

The GCC Business Confidence Index showed that the executives in the consumer product sector were most optimistic especially in terms of revenue growth, as they expect new investments and access to a variety of sources of finances boosting profitability, the study said.

Telecoms were optimistic about revenue growth as new technologies come online, driving usage rates, the study noted.

The report noted that challenges in finding qualified talent casted its shadow as a growth barrier for the sectors.

While Saudi Arabia, Qatar and UAE are the most positive about future revenue growth, income and new investments top the list of the highest level of optimism across all GCC countries, the Index further said.

While Oman, Saudi, and Qatar are most optimistic about new investments, competitiveness and operating costs top the agenda of challenges ahead, the report indicated.

Decision-makers in Qatar were most concerns about competitiveness due to aggressive competition for overseas investments and a limited domestic economic capacity to drive growth.

On the other hand, the index found that the professional services industry was most pessimistic in the GCC.

High operating costs, and limited financing options to manage payment irregularities have the operating environment difficult.

Also, a highly competitive landscape, due to low barriers of entry and excessive cost skimming, present very challenging times ahead.

The ongoing weaker global economy added to worries for executives.