DUBAI — GCC business leaders are more confident of growth than their global peers as reflected in their rise in investment, a survey conducted by Full Circle Investments (FCI), an independent and dynamic strategy consulting and corporate finance advisory firm based in Dubai, said Tuesday.

The survey showed that 67 percent of the GCC’s business leaders are in agreement that things are now much brighter and moving speedily in the right direction. The measure of the interest in investing is reaffirmed by the fact that they are confident of growth in the global economy versus an average of just 40 percent of global corporate leaders. This attitude is further strengthened by the data in which as high as 90 percent are convinced that the GCC economies will grow exponentially in the next 12 months. The optimism is echoed in their belief that where corporate growth is concerned, 86 percent stressed that they are ‘very confident’ or ‘confident’ of their own company’s growth in the next 12 months.

The confidence is predicated on the premise that “oil is paramount,” with 70 percent of respondents ranking high oil prices as the most important driver for GCC economic growth.

Political uncertainty in the wider region does currently serve to maintain high oil prices. This situation, in turn, has prompted unprecedented government spending and economic reforms, the benefits of which are now expected to flow through the region. In brief, the GCC will benefit from political uncertainty with stronger fiscal and current account balances and a higher GDP growth.

Most of the decision makers clearly believe that companies are emphasizing smarter, more considered growth in the short- and long-term scenarios.

Although this is not the first time the GCC is experiencing a strong economic growth outlook underpinned by government spending, there are both qualitative and quantitative differences this time around. Market dynamics have changed, competition has increased and funding is less readily available.

Companies are looking inwards and increasingly focusing on their own resources for funding growth (72 percent). As a result, they are also primarily relying on organic growth in the next 12 months (81 percent).

While 14 percent view M&A as the primary growth driver as high as 73  percent expect to close an M&A transaction in the next 12 month period.

The growth, however, is not without its own set of challenges. These include constraints on obtaining the right talent and addressing “organization health issues.”

Forward-looking companies are of the opinion that as more opportunities become available, those businesses that are flexible and can navigate these issues and strengthen their corporate fabric will be in a strong position to capture unprecedented growth in their markets, the survey said. — SG