The businesses in Saudi Arabia are more positive about the returns and future expansion opportunities as compared to last year. This is because of the Vision 2030 reforms put in place by HRH the Crown Prince Mohammed bin Salman aim to improve private sector participation. A survey data proves that about 33% of middle-market enterprises operating in Saudi Arabia foresee more than 10% growth in 2018, and about 6 out of 10 are aiming a growth of between 6-10%, which is a 24-% point increase as compared to the last year results.
This year, regulation has come up as a new factor in inspiring new innovations and thus pumping up revenue growth. About 35% of Saudi respondents consider regulations as the top-most motivator of innovation, up by almost 28% as compared to last year.
Though the top management is confident about the growth, the only apprehension is regarding the cash flow shortages, giving insufficient cash flow as the top-most obstacle to development this year. About 34% of companies based in Saudi that were surveyed recently said that they depend on bank finance for their funding, but as Saudi is looking at upgrading its stock exchange and opening it to global investors, they are finding funding options through capital markets. About 73% of top executives are thinking of an IPO, which is another proof of rapidly increasing business confidence.
Embracing the adoption of AI
The outlook towards new technologies has drastically changed over the last year. In 2017, approximately 94% of survey respondents said that they would not think of adopting robotic process automation. However, by the year 2020, about 82% are of the view that they would have surely adopted AI and also use or put robotic process automation in the application. Moreover, about 95% of the respondents said that they plan doing so within the coming five years.
Overseas expansion
The business leaders of Saudi Arabia now feel the requirement to step out of their comfort zone and expand their reach beyond their domestic borders if they aim to be the market leaders in their particular space. Overseas expansion is the topmost priority for about 29% of the survey respondents. This will improve the chances of company formation in Saudi Arabia and also foreign company registration in Saudi Arabia. Though about 18% of middle-market enterprises are thinking of expansions domestically and within borders only.
Hiring diverse and skilled talent key to growth ambitions
Motivated by the positive revenue growth targets, the Saudi Arabian corporate leaders have begun a hiring spree, and almost 58% of them are planning to engage more of full-time employees. The only thing they have to keep in mind to have more diversity while recruiting additional staff.
