Amid Growth, Middle East Companies Excel In Selecting CEOs With Global Experience: New Report
The Middle East's corporate landscape is undergoing significant transformation, particularly in the domain of CEO appointments, as revealed by the latest '2023 Route to the Top' report from Heidrick & Struggles. This comprehensive analysis sheds light on executive trends within the region, emphasising the evolving prerequisites for leadership roles amidst economic diversification and technological advancements.
The study meticulously evaluated 1,221 CEO placements across the globe's largest publicly listed companies, including a notable focus on the Middle East. Within this region, which encompasses the UAE and Saudi Arabia, 68 CEO appointments were identified between 2022 and 2023. This change reflects the Middle East's rapid growth and its booming economic landscape.
Remarkably, the region boasted the highest average percentage of new CEO appointments globally, standing at 16%, with Saudi Arabia alone witnessing a staggering 20% of new placements. This figure surpasses other regions significantly, with Poland and Switzerland following behind at 29% and 26%, respectively. Additionally, the Middle East led globally in appointing CEOs with prior C-suite experience, a substantial 90%, indicating a strong preference for seasoned executives.
A noticeable trend in the region is the inclination towards younger CEOs, with the Middle East presenting the lowest average age at 54.5 years. Specifically, the UAE is seeing the youngest CEOs globally, with an average age of 52.7 years, highlighting a shift towards more youthful leadership.
The appetite for CEOs with diverse backgrounds and extensive experience is on the rise in the Middle East. Companies are increasingly valuing leaders with cross-border experience, with the region leading at 50%, ahead of both APAC and Europe. The past three years have also witnessed a growing preference for CEOs with cross-sector experience, particularly in Saudi Arabia and the UAE, demonstrating a shift towards more versatile leadership.
Despite these advancements, gender diversity remains a challenge, with the Middle East lagging behind global averages. Only 3% of the appointed CEOs are women, significantly lower than the worldwide average of 8%. Saudi Arabia, in particular, has not appointed any female CEOs, marking the lowest rate globally.
Maliha Jilani, a Partner at Heidrick & Struggles' Dubai office and the Social Impact Practice lead for the Middle East and North Africa, commented on the importance of diversity in leadership. Jilani underscores the value organizations place on diverse experiences, especially for achieving long-term strategic goals. However, Jilani also points out the need for companies to enhance gender diversity in leadership roles.
Richard Guest, Partner-in-Charge at Heidrick & Struggles' Middle East and North Africa, and the Regional Managing Partner of the global Technology & Services Practice, emphasised the critical demand for experienced and visionary leaders. Guest highlights the necessity for companies to focus on CEO succession planning to navigate the competitive landscape effectively.
The Route to the Top report offers a comprehensive overview of the current state and future prospects of CEO appointments across 27 markets worldwide, providing invaluable insights into executive leadership trends.
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