Global risks 2023: UAE businesses fear cost of living crisis, sustained inflation and resource instability

Global risks 2023: UAE businesses fear cost of living crisis, sustained inflation and resource instability

Report urges UAE business leaders to mitigate against business risks by integrating ESG and cybersecurity frameworks into corporate strategy

The findings come from the World Economic Forum’s Global Risks Report 2023, which interviewed 12,361 executives from 124 countries

Dubai: According to new research published today by the World Economic Forum in partnership with Marsh McLennan, the cost-of-living-crisis, sustained high inflation and severe commodity price shocks have been cited as the three greatest short-term critical threats to business continuity and economic growth in the UAE by a national panel of leading executives.

The report indicates that businesses in the UAE face very real risks that stem from a prolonged cost of living crisis that include spiraling supply chain costs, soaring wages and a collapse in consumer spending power. Businesses also fear the impacts of sustained high inflation and a fall in public sector investment, alongside shortfalls in public goods and human capital. Severe commodity price shocks – ranked as the third greatest risk to UAE businesses – would serve to further weaken global supply chains and inflation on goods and services.

The report suggests that even though the window for action on the most serious long-term threats to businesses is closing rapidly, concerted risk mitigation