A survey conducted by EY, a professional services firm, found that Saudi-based businesses are more optimistic about revenue growth and business opportunities in 2018 than last year.
The company reported that 33 per cent of middle-market businesses anticipate growth of more than 10 percent this year and 60 percent anticipate 6-10 percent growth, up 24 percent on 2017.
“The ambitious growth expectations of Saudi middle market companies cited in the EY Growth Barometer far outstrip the International Monetary Fund’s 2018 GDP growth forecast of 1.7 per cent,” said EY Saudi Arabia managing partner Fahad Altoaimi.
“This is very encouraging for Saudi businesses – one of the key goals of Vision 2030 was to increase participation from middle-market businesses in the economy, and this has clearly boosted confidence.”
This optimism is shown throughout business, with 58 percent of business leaders reporting looking to recruit more full time staff.
Almost three-quarters (73 percent) of respondents said they were considering an IPO, 29 percent said overseas expansion was a growth priority and 18 percent said domestic growth.
Executives reported cash flow as their biggest growth challenge, with 34 percent relying on bank financing. However, optimism was showed regarding government regulation, with 35 percent citing it as the top driver for innovation, compare to 7 percent last year.