Riyadh - Sharikat Mubasher: The GCC economies embrace innovation and diversification as strategic imperatives for sustainable growth to create more resilient economies, provide employment opportunities, and ensure long-term prosperity in an evolving global landscape.

A recent report by Boston Consulting Group (BCG) showed that 85% of senior executives in the GCC region rank innovation among their organizations’ top priorities, while 83% of global companies rank innovation as a top-three priority

This strong commitment to innovation reflects the region’s ambition to lead the global knowledge economy.

Although GCC organizations prioritize innovation at a higher level than their global counterparts, they face greater challenges in translating that ambition into readiness.

Faisal Hamady, Managing Director and Partner at BCG, commented: "To close this gap, it is crucial to strengthen the link between innovation and business strategy. Organizations must benchmark processes, align them with strategic goals, and leverage Generative AI while addressing talent constraints and rising capital costs."

The study noted that 84% of GCC firms are starting to use Generative AI (GenAI) to drive innovation, showing the region’s embrace of leading-edge technologies.

According to Hamdy, GenAI presents a significant opportunity for GCC innovators to boost efficiency and bring fresh perspectives to their organizations.

Moreover, the study pointed out that the GCC companies can compete globally and drive regional economic growth by addressing current challenges and aligning innovation with business strategy.