UAE: Consumer spending projected to improve in 2025, says Majid Al Futtaim CEO
Consumer confidence is rising throughout Mena countries and customers expect to spend more according to Majid Al Futtaim (MAF) Holding's CEO Ahmed Galal Ismail.
Based on its presence in 15 markets across Mena and East Africa and its annual contact with 600 million customers Ismail stated they track regional market changes effectively.
Speaking at the World Economic Forum 2025, the MAF CEO said: Year 2025 will bring continued improvement in every aspect. Our financial situation starts to improve in 2024 through lower rates while inflation remains strong along with currency devaluation across multiple markets and severe international conflicts. So 2025 should be relatively better."
Through its operations in multiple industries Dubai-based MAF employs 42,000 workers from 110 countries.
Beyond 2025
According to Ismail the Mena nations should start planning future growth after 2025. Our current population trends indicate that this is the ideal time to proceed. As a region we have strong financial records across the GCC countries and benefit from energy transition.
Our region produces oil at the lowest possible price. Our area produces the least expensive solar power feed in tariff. With our combined resources of capital funds energy and skilled workers we should lead the AI revolution. Our way forward to long-term wealth creation should continue for 25 years.
According to Ismail the Mena region could produce an additional one trillion dollars in economic output because its population matches its share of global GDP.
Our companies would grow by 200% to 300% while governments collect 200% to 300% more tax revenue. Our people across Mena will benefit from better salaries and reduced unemployment rates through macro-level changes and everyday life improvements. Our goal becomes more achievable because many countries in the region can join forces to pursue this prize. He suggested companies should shift their resources from basic infrastructure development to skill training and knowledge building.
During the high-level panel discussion four government officials joined the event: Ahmed Kouchouk, Minister of Finance of Egypt; Mohammed Aljadaan, Minister of Finance of Saudi Arabia; Nora Suleiman Al Fassam, Minister of Finance and Minister of State for Economic and Investment Affairs of Kuwait; and Jack Hidary, CEO of SandboxAQ.
'AI is not cheap'
The MAF executive leader has worked with data and analytics AI for several years as part of the business strategy.
Our company put hundreds of millions into this business operation previously. We see clear chances for AI to make businesses run better. We need to watch our spending because AI systems have significant costs according to him.
"The computer load is big. The licensing is quite expensive. When we expect fast results from new technology we fail to predict its real long-term effects. The larger the predicted impact of AI the more public interest it will create. People tend to spend too much money on AI projects right now. He believes that AI will permanently change business landscape yet winners and losers will emerge.
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