GCC Boosts Diversification as Abu Dhabi Strengthens Investment Appeal

Gulf business leaders are diversifying into new sectors at a pace that outstrips international peers, while continuing to pursue investment and growth despite global economic uncertainty, according to Khaled Bin Braik, UAE Country Senior Partner at PwC Middle East.

Speaking on the sidelines of the LiveX conference in Abu Dhabi, Bin Braik said GCC companies are responding to energy transition challenges and geopolitical shifts by taking a more selective approach to investment while maintaining a focus on resilience and long-term value creation.

“Business leaders and businesses in the GCC are navigating a complex environment, but what we’re seeing across the region is not a retreat from investment or growth,” Bin Braik said. “Instead, we see greater selectivity, a sharper focus on resilience, and a continued commitment to long-term value creation and sustainable outcomes.”

PwC’s 29th Global CEO Survey highlights the stronger economic outlook among UAE business leaders. Some 91 per cent of UAE chief executives expect domestic economic growth to accelerate over the next 12 months, compared with 55 per cent of CEOs globally who expressed similar confidence in their respective home markets.

Nearly eight in 10 UAE business leaders also expressed confidence in their organisations’ near-term revenue growth, highlighting continued corporate expectations for expansion across the UAE economy.

The survey also points to a significant shift in the operating models of Gulf businesses. Driven by national diversification strategies and rapid artificial intelligence adoption, nearly 70 per cent of UAE executives said their organisations are now competing in sectors outside their traditional core operations.

“It is not simply a story of optimism,” Bin Braik said. “UAE businesses are actively repositioning themselves around new sources of growth, particularly technology, AI, and sectors linked to the country’s ambitious diversification strategy.”

The trend is reinforcing Abu Dhabi’s role as a base for companies seeking access to new investment opportunities, technology-led sectors and the wider GCC market. Businesses are increasingly expanding beyond traditional industries as the region develops new growth engines across technology, AI and other strategic sectors.