Dubai, UAE – The Middle East witnessed the highest percentage of new CEO appointments globally, averaging at 16 percent, with Saudi Arabia leading with an impressive 20 percent, a report said.
This trend is paralleled by markets such as Poland and Switzerland, with similarly high rates of new appointments, according to 2023 Route to the Top report by Heidrick & Struggles, a leading provider of executive search and leadership development services.
The report sheds light on the shifting dynamics of CEO appointments in the Middle East amidst rapid economic growth and technological advancements.
The comprehensive annual study delves into 1,221 CEO placements at the world’s largest publicly listed companies, scrutinizing the profiles and trends shaping leadership in the corporate world. Notably, the Middle East, encompassing nations like the UAE and Saudi Arabia, has seen 68 CEO appointments between 2022 and 2023.
Furthermore, companies in the Middle East are prioritizing CEOs with prior C-suite experience, boasting the highest global percentage at 90 percent. In contrast, only 10 percent of newly appointed CEOs in the region lack prior C-suite exposure, the lowest among all regions.
In terms of age demographics, the Middle East favors younger CEOs, with an average age of 54.5. The UAE stands out with the lowest average age globally at 52.7, indicating a preference for youthful leadership.
One notable trend highlighted in the report is the growing appetite for CEOs with diversified backgrounds. Middle Eastern companies lead globally in appointing CEOs with cross-border experience, underscoring the value placed on global perspectives. Additionally, there’s a rising preference for leaders with cross-sector experience, indicating a shift towards a more versatile leadership pool.
However, despite these advancements, the region lags in gender diversity, with only 3 percent of appointed CEOs being women, falling short of the global average of 8 percent. Particularly concerning is the absence of women among appointed CEOs in Saudi Arabia, reflecting a significant gender disparity in leadership roles.
“The continued trend of hiring more CEOs with cross-border and sector backgrounds is heartening as it reflects that organizations are increasingly seeing the value of diversity, especially in meeting longer-term strategic goals for their businesses,” said Maliha Jilani, Partner in Heidrick & Struggles’ Dubai office and Social Impact Practice lead in the Middle East and North Africa region.
The Route to the Top report offers an in-depth analysis of CEO appointments across 27 global markets, providing valuable insights for businesses aiming to stay ahead in today’s dynamic corporate environment.