Procurement Priorities 2025 Middle East & Southeast Asia

After many years of intense focus on fixing old problems, procurement, when viewed globally appears to be moving into a new phase – characterized by innovation – in which information gets transformed into competitive business intelligence, sourcing and procurement activities become more forward-focused and extending its contributions to areas beyond purchase costs and process efficiency.

Key Takeways

Rapid growth across the Asian continent
Procurement Professionals forecast strong growth which will distinguish the economic climate across the Middle East and South East Asia. For the Middle East region in particular, 68% of procurement professionals participating in the study expect GDP growth for their region to exceed 3%.
High labour crunch expected
Rapid economic growth will bring along challenges in various sectors such as price inflation, lengthening supply delivery lead times, mushrooming risks and pockets of supply scarcity. Close to 18% dramatic and 31% moderate labour scarcity is predicted to emerge.
Market competition tops the list of big challenges
While economic growth appears to be there for the taking, market competition gets the 56%, by far the largest share placing the challenge in the top 3, Supply base follows with 38% and internal processes stands at third position with a 33% share.
Procurement drives business performance
Two-thirds of survey participants suggest that management views procurement as a key contributor to business performance This is on-par with benchmarks from Procurement Priorities studies conducted across Europe, Australia/New Zealand and North America suggesting the transformation of procurement to a strategic value-chain contributor evolving worldwide.
Concerns in meeting objectives
Procurement professionals across Middle East and South East Asia feel concerned and ill-equipped to meet performance objectives. Close to 52% either disagree or remain neutral when asked whether they have sufficient information and tools to meet their performance objectives for the coming year.

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Research Report

Key Takeways

Rapid growth across the Asian continent
Procurement Professionals forecast strong growth which will distinguish the economic climate across the Middle East and South East Asia. For the Middle East region in particular, 68% of procurement professionals participating in the study expect GDP growth for their region to exceed 3%.
High labour crunch expected
Rapid economic growth will bring along challenges in various sectors such as price inflation, lengthening supply delivery lead times, mushrooming risks and pockets of supply scarcity. Close to 18% dramatic and 31% moderate labour scarcity is predicted to emerge.
Market competition tops the list of big challenges
While economic growth appears to be there for the taking, market competition gets the 56%, by far the largest share placing the challenge in the top 3, Supply base follows with 38% and internal processes stands at third position with a 33% share.
Procurement drives business performance
Two-thirds of survey participants suggest that management views procurement as a key contributor to business performance This is on-par with benchmarks from Procurement Priorities studies conducted across Europe, Australia/New Zealand and North America suggesting the transformation of procurement to a strategic value-chain contributor evolving worldwide.
Concerns in meeting objectives
Procurement professionals across Middle East and South East Asia feel concerned and ill-equipped to meet performance objectives. Close to 52% either disagree or remain neutral when asked whether they have sufficient information and tools to meet their performance objectives for the coming year.