Middle East companies are increasingly led by young and sporty CEOs, with the average age of chief executives appointed in 2022 at 54.3 as against the global average of 56.5 years, a new market study revealed.
The UAE fares even better on this front, with its newly appointed CEOs having the lowest average age globally at 53.1.
Middle East also has the highest share of CEOs with cross-border experience globally, with almost half of the companies in the region – 49 percent to be precise – having chief executives with vast experience in managing transnational businesses, according to the Heidrick & Struggles’ 2022 ‘Route to the Top’ report.
Human Resource (HR) experts said the changing trends in the profiles of the C-suite executives come amidst the region currently experiencing a strong growth on the back of the economic diversification drive by various regional governments.
Middle East companies favor experienced CEOs
“As the Middle East works towards economic diversification amidst the volatile and fast-paced global landscape, companies in the region are leaning towards hiring more experienced CEOs with prior C-suite experience and cross-border experience,” Maliha Jilani, partner in Heidrick & Struggles’ Dubai office, told Arabian Business.
According to the Heidrick & Struggles report, Middle East companies also have the highest preference for experienced CEOs, with an average of 89 percent having prior C-suite experience overall.
“Only 11 percent of appointed CEOs in ME organisations have no prior C-suite experience, the lowest among all other regions in the world,” the report said.
Jilani said with increasing focus and investment into new industries, companies in the region are also looking for traits and skill sets among CEOs that can drive innovation and growth in the economy.
“An entrepreneurial spirit and risk-adverse mindset are highly valued [for CEO hiring],” said Jilani, who is also the Social Impact Practice lead for MENA region at Heidrick & Struggles, a leading international executive search and management consulting firm.
She said opportunities are ripe for ambitious youth and entrepreneurs to step into leadership positions, especially with SMEs driving economic growth in the region and contributing a major share in their GDP growth.
For instance, SMEs contribute close to 29 percent currently to Saudi Arabia’s GDP from about 22 percent in 2016, Jilani said.
“Given the comparatively young labour market in the region, nationals who are dynamic and with entrepreneurial skills can continue to leverage these opportunities to take the helm, especially in the nascent and up-and-coming sectors,” she said.
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