Business confidence in the UAE is soaring, even as global markets grapple with economic uncertainty and technological disruption. The 2025 KPMG CEO Outlook reveals that UAE-based leaders are among the most optimistic worldwide, driven by strong fundamentals, bold investments in artificial intelligence (AI), and a deep commitment to sustainability.

According to the report, 80 per cent of CEOs in the UAE are confident about their company's three-year growth outlook, while 84 per cent express confidence in the national economy - figures that surpass global averages. This optimism is underpinned by fiscal stability, robust domestic demand, and the country's transformation into a global innovation hub.“CEOs in the UAE continue to express among the highest levels of business confidence worldwide,” said Dr. Abdullah Al Fozan, CEO of KPMG Middle East.“Their approach combines ambition with responsibility, particularly in AI adoption.”

AI is at the heart of this confidence. Over half of UAE CEOs (52 per cent) rank AI integration as a top strategic priority - nearly 20 percentage points above the global average of 34 per cent. An overwhelming 92 per cent believe their organizations are ready to deploy AI responsibly under well-defined governance frameworks. This readiness reflects a shift from rapid adoption to strategic refinement, with national initiatives such as MBZUAI and G42's K2 Think model emphasizing efficiency, reasoning, and open collaboration. Nearly three-quarters of UAE leaders expect tangible returns on AI investments within one to three years, signaling a pragmatic focus on measurable outcomes.

Human capital development is keeping pace with this technological acceleration. Eighty-four percent of CEOs plan to increase headcount over the next three years, while 80 per cent are redesigning roles to integrate AI collaboration. Reskilling is a top priority: 72 per cent are investing in retraining high-potential employees, and 64 per cent are recruiting new technology specialists.“Leading organizations are embedding AI into the core of their strategies and investing in what's needed for success - quality data, workforce readiness, and responsible governance,” said Emilio Pera, Deputy CEO of KPMG.

Sustainability is another defining pillar of UAE corporate strategy. Forty-four percent of CEOs report aligning climate objectives with business goals, while 76 per cent see AI as a critical enabler of decarbonization and transparency. From Masdar City's green infrastructure pilots to AI-driven energy analytics, the UAE is applying technology to accelerate its Net Zero 2050 ambitions. COP28-linked regulatory accelerators and advanced reporting frameworks are reinforcing this momentum, making sustainability not just a compliance requirement but a growth opportunity.

Economic fundamentals further strengthen this outlook. The IMF projects continued resilience in GCC non-oil activity, supported by infrastructure spending, foreign investment, and stable inflation around 2 per cent. In the UAE, growth in tourism, logistics, renewable energy, and digital sectors aligns with national diversification goals. CEOs are leveraging these conditions to expand internationally, invest in technology, and align corporate growth with the country's digital and green transformation agendas.

Board engagement is equally advanced. Eighty percent of UAE CEOs report that their boards are fully prepared to oversee the adoption of advanced technologies, ahead of global peers. This proactive governance ensures that innovation is balanced with ethics, regulation, and workforce readiness.

As global uncertainty persists, the UAE's private sector is setting a benchmark for inclusive, innovation-led growth. By coupling technological ambition with sustainability and embedding human capital strategies into transformation plans, UAE CEOs are not just navigating disruption - they are turning it into opportunity. The message is clear: in the race to redefine business for a digital, low-carbon future, the UAE is leading from the front.

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