Blog

Center East companies extra resilient than world counterparts

Middle Eastern companies more resilient than their global counterparts

According to a new PwC study, companies in the Middle East appear to be more resilient than their global counterparts in terms of several crisis response metrics.

More than 2,800 business leaders worldwide shared company data and findings with PwC and gave the Big Four auditing and consulting firm a comparative overview of how large companies from different regions are coping with the pandemic-induced downturn.

Middle Eastern companies have equated themselves with their global competitors in responding to the crisis – quickly moving to remote working, relocating supply chains, and taking financial measures to survive. Now, in the midst of a slow, staggered, and setback-stricken global emergence from the crisis, the region appears to have advanced on several metrics.

For example, more than 40% of respondents in the Middle East reported positive effects of the pandemic on their business – compared to just 20% globally. The numbers indicate a greater willingness and ability to adapt, which made it possible to orientate themselves quickly to new market trends. A positive outlook has also emerged, as evidenced by PwC’s March 2021 CEO survey that found Middle Eastern executives way ahead of the world in terms of optimism.

Part of this resilience is based on the ability to self-reflect. Only 30% of global companies have looked closely internally for vulnerabilities and vulnerabilities that need to be addressed – compared to nearly 50% in the Middle East. “This willingness to repair, rethink and reconfigure will put Middle Eastern organizations in a stronger position to weather future crises,” said Achraf El Zaim, PwC’s Middle East partner.

And there is also a sense of responsibility. Almost 85% of business leaders in the Middle East were satisfied with their crisis management and communication among employees – compared to around 70% worldwide. The region was better at defining roles and protocols than sinking into chaos.

Looking ahead, the region appears to be safer in dealing with future risks, while 80% are confident they can adapt their strategy to future crises – compared to 75% globally – spurred on by successfully tackling unprecedented challenges.

These comparisons include a feeling that companies in the Middle East are prepared to face a crisis. According to the experts, this could have something to do with the fact that the region is already facing a protracted crisis of devastating proportions: the global energy transition away from fossil fuels – the trade of which has long supported the regional economy.

Efforts to combat this have been going on for years. “Businesses in the Middle East are committed to supporting the region’s ambitions to build more diversified and digitized knowledge economies with distinctive national visions by the end of the decade, to proactively address these key drivers of change, and to build a more adaptable and resilient future for our region.” closed El Zaim.

PwC’s report was led by partners Achraf El Zaim, Abed Bazzi, Mo Farzadi and Matthew White.