UAE firms fear cost-of-living crisis threatens business continuity – study

UAE firms fear cost-of-living crisis threatens business continuity – study

Businesses in the UAE are worried about the cost-of-living crisis, sustained high inflation and severe commodity price shocks, according to a new report.

The issues have been cited as the three biggest short-term critical threats to UAE business continuity and economic growth by a panel of executives, the latest research, published on Monday by the World Economic Forum (WEF) in partnership with Marsh McLennon, said.

The report is based on interviews with more than 12,000 executives and views of more than 1,200 global risk experts, policymakers and industry leaders from 121 economies.

UAE respondents who participated in the survey also cited geopolitical contestation of resources, geoeconomics confrontation and failure of cybersecurity measures as among the major risks that are most likely to pose the biggest threat to the country in the next two years.

The WEF report indicates that UAE businesses 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.

“For the majority of UAE executives interviewed, the ‘new normal’ that followed the COVID-19 pandemic