Despite private companies in the Middle East seeing digitization as a competitive advantage, investment and implementation levels are still far from advanced compared to their European counterparts and much remains to be done. According to a survey by the research consultancy PwC among 200 private companies in nine Middle Eastern countries, only half of the revenue growth of the leaders' projects in the next 12 months, while 18% s & # 39 , is expected to decline due to concerns about the overall business climate. Peter Englisch, business and private leader at PwC EMEA, said the cautious mood in the Middle East echoes the global sentiment that the pace of economic activity has been slow. "Many note clear evidence of a global slowdown in 2019, which is expected to continue, primarily due to declining growth in China and uncertainty caused by the US-China trade war, and US-China trade friction." India and Mexico," he said. he told me The International Monetary Fund lowered its growth forecasts for the Middle East and Central Asia in October to 0.9%, from 1.9% in 2018. However, Englisch said recessions often bring opportunities and companies that prepare early , and push forward rather than retreat, can benefit greatly during tough times and beyond. "Companies that see digital transformation as the key to unlocking the next stage of growth and getting it right to have the chance to grow faster when the next recovery hits," he said. According to the PwC survey, 78% of private companies in the Middle East acknowledge that digitization will have an impact on the long-term viability of their business, a much higher percentage than the survey found in Europe.
Eight essential technologies
The survey found that the Middle East was most likely to rank all eight essential technologies – 3D printing, artificial intelligence, augmented reality, blockchain, drones, the Internet of Things, robotics and virtual reality – as relevant to their business. And only 18% of respondents (less than one in five) from private companies plan to allocate more than 5% of their investments to digitization, compared to 35% of respondents in certain parts of Europe such as the Nordic countries. Adnan Zaidi, PwC's business and private leader in the Middle East, said the current economic downturn is testing private EM companies. "A cooling business climate and potentially reduced growth rates, or even a drop in revenue, will likely force leaders to revisit costs," he said. He urged business leaders to plan ahead and carefully balance potential cost savings with digital investment needs and should use a digital strategy that addresses all areas of a business to meet current and future needs. "If private entrepreneurs don't think strategically about how to transform their businesses now, they may not be prepared for potential business disruption," he said. In fact, he said that the vision of the business and the promotion of digital transformation at the top of the organization are essential to achieve lasting change. Finding the right skill set is just as important, he says, especially since the digital age, in particular, requires more specialization. The survey found that 39% of private business owners said skills shortages cost them 5% or more in terms of potential revenue growth. "Private business leaders must define their digital ambition through clearly developed and communicated strategies, ensure board and manager commitment, choose the right digital technologies for their business, attract the right skills, and develop a culture of change. The combination of these factors is what will help them be competitive in the future," he said.