This aligns with global patterns where companies across various regions are struggling to match their innovation priorities with practical readiness , though the gap appears more significant in the GCC .

“ We are seeing GCC organisations prioritise innovation , with 85 % of executives ranking it highly . However , converting this ambition into readiness remains a challenge ,” said Faisal Hamady , Managing Director and Partner at BCG .

“ To close this gap , it is crucial to strengthen the link between innovation and business strategy . Organisations must benchmark processes , align them with strategic goals , and leverage Generative AI while addressing talent constraints and rising capital costs .”

Source : Innovation Systems Need a Reboot , BCG

When GCC business leaders were asked to rank the challenges facing their innovation teams , talent pool constraints emerged as one of the top concerns , alongside the rising cost of capital .

The GCC is in flux when it comes to attracting top talent . While Dubai , Abu Dhabi , and Riyadh have all ranked highly as cities of choice for global talent , the region is still in the nascent stages of building its talent pool .

To improve innovation readiness and link innovation with business strategy , BCG recommends focusing on key elements .:

• Executive ownership : Ensure innovation is championed by the CEO or other prominent members of the C-suite .

• Clear sense of purpose : Develop a shared story on the purpose of innovation and how it supports the company ’ s strategy .

• Focus on competitive advantage : Explicitly focus on opportunities where the organisation has an explicit right to win .

• Target portfolio structure : Create a vision for how resources should be deployed across the innovation portfolio .

• Quantified objectives : Establish a fact-based perspective on how innovation contributes to financial goals .

As GCC economies diversify towards knowledge-based sectors , strategic innovation becomes crucial . By addressing current challenges and aligning innovation with business strategy , GCC companies can compete globally and drive regional economic growth . �

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