Growth prospects are high for Gulf businesses, as over 75 percent of those surveyed in the 2011 ICAEW Global Enterprise Survey reported plans to improve turnover. Many of those respondents anticipate growth in the double digits. The survey covers ICAEW Chartered Accountants employed in key business positions. Many firms in the Gulf are ambitious about growth, believing that certain challenges encountered in the recent past will fade. Several issues have faded in urgency, including pressures from consumer demand and worries over late payments. Those respondents not located in the UAE still see consumer demand as a major challenge, while those within the UAE are less concerned. Based on the most recent consumer confidence rankings by Nielsen, Saudi Arabia and the UAE are among the most optimistic nations. The latest PMI also reported a surge in business activity throughout the UAE in October, which will push output and growth up to a 4-month high. Beginning and increasing exports is a priority for firms in the Gulf, according to the report. Seventy percent of businesses currently involved in exporting plans to experience growth in 2012, with two out of three reporting growth in exports for the current year. Gulf businesses not currently exporting have plans to do so, with over 50 percent expecting to start within the next few years and one third with definite plans in place. A shortage of management professionals and employee turnover are some of the reported challenges for Gulf companies outside of the UAE in 2012. Fifty-five percent of respondents plan to pay down their debt and improve cash balances. Economists are forecasting a massive Saudi budget surplus for the coming year, hitting SR100 billion. This expectation accounts for rising oil production and increasing prices, leading to revenue of SR1.1 trillion, the highest seen in the Kingdom since 2008. Enormous infrastructure projects will likely be funded through the massive surplus.
