A new survey revealed that leaders in the Middle East have distinct concerns regarding leadership attraction, development, retention, succession, and turnover compared to their global counterparts.
The study from Heidrick & Struggles gathered insights from 112 CEOs and board members in the Middle East, highlighting their most pressing concerns and challenges.
While the World Bank predicts a 2.7 percent economic growth in the Middle East and North African region for 2024, up from 1.9 percent in 2023, ongoing conflicts, trade disruptions, and other factors continue to cast a shadow on the outlook.
According to the report, Middle East leaders identified economic (56 percent) and geopolitical (56 percent) uncertainty and volatility as the most significant issues facing their organizations in 2024. Their global peers share similar sentiments, with the global average being 63 percent and 39 percent, respectively.
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However, the area where Middle East leaders significantly diverge from their global counterparts is in matters related to leadership. The survey revealed that 29 percent of Middle East CEOs and board members consider leadership attraction, development, and retention as their biggest challenge, compared to the global average of 24 percent. Additionally, 22 percent of Middle East leaders expressed concerns about leadership succession and turnover, in contrast to the global average of 17 percent. Yet, when it comes to these key issues, only around one-third of those who expressed concern in the Middle East feel confident in their organization’s ability to manage them, which is lower compared to leaders surveyed worldwide.
Navigating the complex Middle Eastern business environment
According to Richard Guest, partner in charge of Heidrick & Struggles, Middle East and North Africa, the year 2024 presents Middle East organizations with a complex external business environment and intricate regional dynamics that require a localized approach. To navigate and succeed in this challenging landscape, companies must prioritize not only the attraction of suitable leaders but also the retention and development of talent from within, preparing them to assume leadership roles.
Guest emphasizes that leaders face mounting pressure to possess forward-thinking perspectives while remaining aligned with present-day requirements. In light of this, the responsibility falls on boards to assist organizations in maintaining a steadfast focus on building internal capabilities and addressing competency gaps among current and emerging leadersm, Guest added.
The survey also highlighted that, although the region’s leaders have a similar level of confidence in their leadership development strategies positioning the organization for the future, 12 percent reported having no confidence at all. This figure is twice as high as the global average.
Cultivating a culture of excellence
For his part, Markus Wiesner, regional managing partner of Heidrick Consulting for Asia Pacific, Middle East, and Emerging Markets, highlights the importance of cultivating the right culture as a foundation for an effective leadership development strategy.
According to Wiesner, a culture of excellence not only ensures that capable leaders remain within an organization but also enables organizations to attract top talent from around the world.
He emphasizes the need for a strategic roadmap that aligns the perspectives of boards and leaders, identifying the key skill sets required for the future.
Wiesner suggests that talent acquisition should be viewed as a continuous, long-term imperative rather than a reactive response to retirements or underperforming C-suite positions.
Furthermore, he warns that without a robust assessment process for leaders and proactive succession planning, organizations may struggle to navigate the fast-paced and dynamic landscape of the Middle East.
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