RIYADH: CEOs in the Middle East are entering 2026 with stronger confidence levels and a higher readiness to deploy artificial intelligence responsibly than many of their international peers, a new study showed. 

According to KPMG’s latest regional outlook, 88 percent of chief executives in Saudi Arabia are confident in their companies’ growth prospects over the next three years, supported by Vision 2030 reforms, regulatory stability and rapid digital transformation. 

The survey highlights diversification progress, infrastructure upgrades, and investment in emerging industries as key drivers of sentiment. 

With pro-growth policies, strengthened governance, and expanding capital flows, CEOs report a business environment that increasingly supports innovation, resilience, and sustainable expansion. 

These findings by KPMG underscore the progress of Saudi Arabia’s Vision 2030 program, with the Kingdom seeking to establish itself as a regional business hub by the end of the decade. 

Abdullah Al-Fozan, CEO of KPMG Middle East, said: “CEOs continue to demonstrate optimism anchored in action. Vision 2030 is reshaping the Kingdom’s economic landscape, and business leaders are responding with strong investments in technology, governance, and talent.” 

He added: “Their commitment to responsible innovation — especially in AI — reflects a balance between ambition and accountability. The findings confirm that Saudi Arabia is moving from navigating global uncertainty to defining the standards for future-ready growth.” 

The study shows that 84 percent of Saudi CEOs say their organizations are ready to deploy AI responsibly, well above the global average of 76 percent, backed by national data governance initiatives led by the Saudi Data & AI Authority and programs such as Humain. 

Workforce expansion expectations are also strong, with 68 percent of executives planning to increase headcount, driven by technology-enabled roles and the Kingdom’s Human Capability Development Program. 

KPMG found that 76 percent of CEOs in Saudi Arabia have integrated environmental, social, and governance into their corporate strategy, compared to 44 percent globally, while 92 percent are confident in meeting evolving sustainability regulations. 

Executives also see AI as a catalyst for transparency and emissions reduction, with 88 percent believing it will play a pivotal role in decarbonization efforts. 

The analysis revealed that investment priorities among CEOs in the Kingdom reflect a balance between short-term resilience and long-term innovation. 

In Saudi Arabia, 36 percent of CEOs identify AI as a top investment focus, while 44 percent are prioritizing cybersecurity and 24 percent workforce upskilling. This distribution underscores a deliberate effort to future-proof business operations while maintaining competitiveness in a rapidly digitalizing economy. 

“CEOs are investing in AI with greater confidence — not just because of its promise, but because of the measurable value they are seeing and the rapid emergence of agents, making expected returns more accessible and scalable,” said Emilio Pera, deputy CEO at KPMG Middle East. 

He added: “Leading organizations are integrating AI into the core of their business strategies and investing in what’s needed for success: quality data, workforce readiness, and responsible AI governance built both for trust and agility.” 

Earlier in November, the Cisco AI Readiness Index also echoed similar views and said that more than half of Saudi companies are already using AI to strengthen cybersecurity defenses, with firms adopting the technology to accelerate threat detection, response, and recovery. 

According to Cisco, 51 percent of organizations in the Kingdom have implemented AI in their security operations, while 60 percent of respondents said they are highly aware of AI-driven cyber risks as businesses embed the technology deeper into their security architecture. 

UAE prioritizes workforce and AI

In the report, KPMG said that UAE CEOs are accelerating investment in AI while prioritizing people, skills, and responsible innovation as core drivers of future growth. 

Optimism for the UAE economy remains among the highest worldwide, with 84 percent of CEOs expressing confidence in the country’s economic outlook for the next 12 months compared to 81 percent by their global peers. 

The report attributed this high optimism to factors including the UAE’s stable fundamentals, policy consistency, and continued investment in diversification, talent, and advanced technology. 

Some 80 percent of CEOs are optimistic about their company’s three-year growth outlook, supported by robust domestic demand and fiscal stability. 

The report shows that 84 percent of CEOs expect to expand headcount over the next three years, with 80 percent already redesigning roles to integrate AI collaboration across the business. 

Some 72 percent of CEOs in the UAE are investing in the retraining of high-potential employees, and 64 percent are recruiting new AI or technology specialists — closely aligned with global benchmarks. 

“UAE CEOs are advancing a model of growth where people, technology, and governance move together. Their focus on building skilled, future-ready teams, supported by responsible AI adoption, reflects a leadership approach anchored in delivery,” said Pera. 

He added: “This alignment with national priorities is shaping a business environment ready for the opportunities of 2026 and beyond.” 

According to the report, 52 percent of CEOs say AI integration is a top investment priority, while 92 percent believe their organizations are ready to deploy AI responsibly. 

On the sustainability front, 44 percent of CEOs in the UAE indicate that ESG is integrated into their business strategies, while 76 percent see AI as a critical enabler of decarbonization, transparency, and performance improvement. 

“The findings show that CEOs across the Middle East are turning disruption into opportunity — investing boldly in technology, innovation, and talent to drive growth,” said Al-Fozan. 

He added: “In both Saudi Arabia and the UAE, we’re seeing strong confidence and a clear commitment to responsible innovation, particularly in AI, where leaders are coupling ambition with solid governance and upskilling strategies.”