transitioning to the new normal middle east updates...2020/06/16 · welcome stephen anderson...

PwC Middle East - Webcast Series 16 June 2020

Transitioning to the new normal

Middle East Updates

1

Our focus for today

Welcome

Stephen AndersonStrategy and Markets LeaderPwC Middle East

Economic update 4th edition Middle East CFO Pulse Findings

Stephen AndersonStrategy and Markets LeaderPwC Middle East

Richard BoxshallChief Economist PwC Middle East

Q&ACFO Pulse : Responding to potential future threats to emerge stronger

Matthew WhiteBusiness Resilience LeaderPwC Middle East

Lina ShadidDigital Health LeaderPwC Middle East

PwC Middle East - Webcast Series - 16 June 2020 3

COVID-19 checklist and digital resources available

http://pwc.com/us/covid-19-navigator

PwC ME COVID-19 website - prior webcasts and resourceswww.pwc.com/me/covid-19

https://digitaltrust-me.pwc.com/assess/COVID

Digital Trust Manager Our COVID-19 response module identifies any gaps in your organisation's pandemic response approach. Available in both English and Arabic, the assessment focuses on business resilience, and provides detailed recommendations on the steps to take to improve your ability to respond and recover.

COVID-19 - NavigatorNavigator is an online, interactive tool to help organisations better understand where they are on their path toward COVID-19 preparedness and response across six focus areas.

Digital Fitness for the WorldPwC’s upskilling contribution to the world in response to COVID-19. Access our free Digital Fitness App available from the Apple App store and Google Play store.

If registering with your personal email, use invite code (LRNALL) to access today

http://pwc.com/us/covid-19-navigator

http://pwc.com/me/covid-19

https://digitaltrust-me.pwc.com/assess/COVID

Quick poll

1 Economic update

Richard Boxshall


The OECD’s world GDP forecast illustrates the U- and W-shaped scenarios

World GDP index, 2019 Q4 = 100

Sources: OECD, World Bank

2020 2021

OECD (‘single-hit’ scenario)

-6.0 5.2

OECD (‘double-hit’ scenario)

-7.6 2.8

World Bank -5.2 4.2

World GDP growth (% change)

2 4th edition Middle East CFO Pulse findings Stephen Anderson


Theme 1: Increased recovery timelines and economic impactIf COVID-19 ended today, how long would you estimate it would take for your company to get back to ‘business as usual’?

● Recovery timelines have increased globally with 72% of Middle East CFOs now expecting a return to ‘business as usual’ to take three months or more

Source: PwC, COVID-19 CFO Pulse, 16 June, 2020All territories: 989, Middle East 89, UAE 39


Theme 1: Increased recovery timelines and economic impactWhat impact do you expect on your company’s revenue and/or profits this year as a result of COVID-19?


● Compared to prior weeks, more Middle East CFOs (89%) expect their profits and/or revenue to decrease, although the severity has improved – with only one in ten now expecting the decrease to be 50% or more


Theme 2: Concerns around a global economic downturn and a second waveWhat are your top 3 concerns with respect to returning to the workplace and operating in a changed business environment?


● Global economic downturn (60%), financial impact (55%) and a new wave of COVID-19 infections (53%) are the top 3 concerns for Middle East CFOs with respect to returning to the workplace

● 54% of UAE CFOs are concerned about a decrease in consumer confidence vs 31% globally


Theme 3: Rebuilding revenues and managing costs as we move forwardWhich changes will be the most important to rebuilding or enhancing your revenue streams?


● 61% Middle East CFOs consider pricing strategies the most important change for rebuilding or enhancing revenue streams vs 48% globally, followed by changes to products and services (53%)

● 51% of UAE CFOs are considering changes to geographic markets


Theme 3: Rebuilding revenues and managing costs as we move forwardWhich of the following financial actions is your company considering as a result of COVID-19?


● Cost containment and deferral or cancellation of investments are still the actions most frequently considered as a result of COVID-19 for both Middle East and UAE CFOs


Theme 3: Rebuilding revenues and managing costs as we move forwardAs a result of COVID-19, which of the following does your company expect to occur in the next month?


● Middle East CFOs are still more likely than the average to expect layoffs: 39% vs 25% globally

● In the UAE, 51% of CFOs expect layoffs to occur in the next month


Theme 4: Growing confidence in return to work strategiesIn returning to the workplace, how confident are you in your company’s ability to do the following?

Source: PwC, COVID-19 CFO Pulse, 16 June, 2020All territories: 989, Middle East 89

● As workplaces reopen, Middle East CFOs remain most confident in adopting tactical measures to ensure safety of customers and employees

● 70% of Middle East CFOs are very confident in their ability to provide a clear response and shut down protocols to manage any second wave of infection


Theme 4: Growing confidence in return to work strategiesIn returning to the workplace, how confident are you in your company’s ability to do the following?


● 46% of UAE CFOs are very confident in their ability to create new revenue opportunities


Theme 4: Growing confidence in return to work strategiesWhich of the following is your company planning to implement once you start to transition back to onsite work?

● Workplace safety measures are top of mind for Middle East (81%) and UAE (82%) CFOs, while reconfiguring worksites is also a priority as UAE businesses transition back to onsite work



Theme 5: Emerging stronger and more resilientWhat about the current situation will make your company better in the long run?

● Middle East CFOs believe flexible working, leaner operations and identifying new ways to serve customers will help them emerge stronger from the crisis.

● 82% of UAE CFOs are benefiting from better resilience and agility within their organisations vs 65% globally.


3 CFO Pulse: Responding to future threats to emerge strongerMatthew WhiteLina Shadid


Stephen Anderson ME Strategy and Markets Leader

PwC Middle [email protected]

Contact us

Richard BoxshallChief Economist


Matthew WhiteBusiness Resilience Leader


Lina ShadidDigital Health Leader


pwc.com/me

Thank you

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.Established in the Middle East for 40 years, PwC has 22 offices across 12 countries in the region with around 5,600 people. (www.pwc.com/me).PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

© 2020 PwC. All rights reserved

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transitioning to the new normal middle east updates...2020/06/16 · welcome stephen anderson...

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