Middle East Boards Shift Focus to Strategic Value Creation, New Index Reveals
Table of Contents
A groundbreaking study indicates a notable evolution in corporate governance across the Middle East, with boards increasingly transitioning from a compliance-focused role to becoming strategic drivers of long-term value. The inaugural Middle East edition of the Board Value Index, conducted by board technology and advisory firm Board Intelligence, highlights a region poised for greater strategic confidence as economies evolve and regional integration accelerates.
The study found that an extraordinary 94% of respondents rate their board processes as efficient. However, this efficiency is tempered by challenges, with 41% citing poor information quality and 38% pointing to rigid decision-making frameworks as key obstacles to agility.
A new Era for Middle East Boardrooms
According to Pippa Begg, CEO of Board Intelligence, the findings signal a pivotal moment. “We are privileged to launch our first-ever Board Value Index for the region. The Middle East’s boardrooms are entering a new era of strategic confidence,” she stated. “As economies evolve and regional integration accelerates, boards are no longer content with oversight alone – they are stepping up as architects of performance and national progress.”
The Board Value Index is based on insights from board directors at companies with revenues exceeding £50 million (US$66.6 million) throughout the Middle East. Nearly half of those surveyed (48%) view their boards as essential tools for value creation, demonstrating a strong belief in their ability to both manage risk and unlock organizational performance. The report paints a picture of capable and well-aligned boards, albeit ones facing hurdles related to information access and procedural versatility.
The Challenge of Foresight
The study underscores a critical need for boards to prioritize forward-looking strategies. While a majority express confidence in their current capabilities, the data reveals a tendency to dwell on past performance rather than proactively planning for the future. Only 21% of directors report an equal balance between reviewing past results and strategizing for what lies ahead. A substantial 41% dedicate more time to retrospective analysis, while 38% adopt a more future-focused approach.
This imbalance presents a significant opportunity to reshape boardroom agendas, embedding a greater emphasis on strategy, innovation, and long-term value creation. Directors will need to refine their use of time, improve the quality of information informing their decisions, and foster more agile decision-making processes to enhance foresight and strategic responsiveness.
Alignment with National visions
Boards across the Middle East demonstrate strong alignment with national and regional transformation priorities. A combined 98% of boards identify as either “actively leading” (48%) or “engaged contributors” (50%) to the region’s integration and diversification agenda. Though, the study suggests an opportunity for boards to move beyond a participatory role and assume greater leadership in these initiatives.
Furthermore, over three-fifths of boards (60%) report “extremely effective” alignment with national visions such as Saudi Vision 2030 and UAE Vision 2050, with an additional 37% indicating moderate alignment.
Preparedness for Emerging Risks
The report also assesses board readiness for emerging challenges. Nearly three out of five directors (58%) believe their boards are well-equipped to anticipate geopolitical shifts through proactive scenario planning and risk modeling, while 41% report moderate readiness.
Confidence levels are also high regarding cybersecurity preparedness, with 60% of directors expressing strong confidence in their board’s ability to effectively oversee and respond to data breaches, citing established protocols and response frameworks. A majority (61%) also feel confident in their board’s ability to manage relationships with key government stakeholders.
These findings portray a boardroom culture defined by confidence, discipline, and purpose-one that is evolving from alignment to anticipation. Board Intelligence, trusted by over 80,000 global leaders, conducted the research among more than 300 board directors across the UK, US, Canada, and the GCC, with 100 directors surveyed specifically from across the GCC region, including the united Arab Emirates, Kingdom of Saudi Arabia, Bahrain, Qatar, Kuwait, and Oman.
– What are the key challenges facing Middle Eastern boards, according to the study?
