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Public expectations of localisation are pivotal for businesses to succeed in Saudi Arabia, SEC Newgate’s 2025 Impact Monitor reveals

Residents of Saudi Arabia are prioritising localisation and expecting businesses to be transparent when it comes to ESG issues, according to the SEC Newgate 2025 Impact Monitor: Managing Reputational Risk and Opportunity in a Fragmented World.

The fifth annual global study by SEC Newgate – the global strategic communications, advocacy and research group with offices in Dubai and Riyadh – surveyed more than 20,000 people across 20 countries and territories and included residents of Saudi Arabia for the first time. The report revealed communities are judging organisations on their real-world impacts. This year’s survey also marks the evolution from the group’s previous annual ‘ESG Monitor’ to the ‘Impact Monitor’, a shift driven by the realities of a world where global narratives are giving way to local priorities and pressures, and the public is increasingly looking for positive impacts and outcomes.

Of those asked, 90% of Saudi participants gave an importance rating of 7 or more out of 10 for large businesses to conduct themselves in a responsible way, and 82% for small to medium businesses. This reinforces that larger companies are held to a higher standard from residents, with greater expectations for transparency.

Participants in the Kingdom went on to identify the top performing industries that act responsibly as technology & telecommunications, and healthcare with 89% of those asked scoring them between 7-10 out of 10 for performance.

The report also showed the way businesses in Saudi Arabia prioritise localisation over globalisation has a significant bearing on how the community feels towards them. Of those asked, 83% respond more positively towards a business when they manufacture products locally, and 81% when a business also sources components or raw materials locally.

Some of the additional key findings from the Kingdom include:
• An overwhelming majority in Saudi Arabia – 88% – feel positive towards the energy transition in the country, with around half believing that businesses are placing the right level of emphasis on environmental actions.
• ESG remains of interest across the Kingdom with 82% of those asked interested in knowing more about the associated issues.
• Looking at the perceived direction countries are going in, from the 20 countries surveyed, optimism is the highest in Saudi Arabia and the UAE (along with Singapore and India) where at least 9 in 10 think their country is heading on the right track (compared with the global average of 48%).

This year’s global report, released ahead of the World Economic Forum (WEF) in Davos next week, reflects a world in which ESG frameworks are being defined locally, with communities assessing organisations through the lens of local jobs, local investment and local values, and their responsiveness to local priorities and pressures including outcomes for staff and the environment. The research underscores a defining challenge for global businesses: communities want companies to engage, but the issues that matter — and the stances considered credible — differ widely by market. Navigating these local expectations is now central to managing global reputation.

Commenting on the survey results from Saudi Arabia, Elena Gramatica, Founder and CEO, SEC Newgate Middle East, said, “We are living in a time of great change. Humanity has made significant breakthroughs with technology in recent years, and the world has become more accessible than ever before. With this brings a deeper knowledge and understanding about our impact on the planet. As a result, communities are holding businesses more accountable and those that are transparent, prioritise localisation, and act with intention are being recognised. Saudi Arabia is taking an active role in setting global benchmarks for climate awareness and it is encouraging to see that residents are equally motivated to hold businesses accountable. It is a timely reminder to organisations that consumers no longer see ESG as optional but that it impacts the choices they make.”

Speaking on the global findings, Fiorenzo Tagliabue, Group CEO of SEC Newgate, said: “Corporate reputation has shifted markedly over the past year. As political scrutiny and social expectations evolve, our Impact Monitor shows a clear pattern across markets: people judge companies by the real impact they deliver — particularly in the communities closest to their operations. This shift is redefining how organisations earn credibility and permission to operate.

“For global companies, the challenge is bringing differing local expectations together in a coherent global direction and, in turn, implementing that direction in ways that are meaningful in each market. Meeting this challenge requires a deep understanding of the communities, regulators, markets and media they operate among, as well as the ability to balance varied expectations while maintaining credibility worldwide.’’

Over the past twelve months, perceived performance ratings have edged upwards, suggesting that many organisations across the world are listening more closely to community concerns, responding more effectively to expectations and communicating their impact with greater clarity and credibility.

Crucially, the report highlights the importance of framing impact efforts through a local lens. There is a growing global preference for businesses to manufacture locally, hire locally and source materials locally, even if it means higher costs for consumers. Communities increasingly link these localised benefits and outcomes to improved perceptions of organisations, reinforcing the need for companies to adapt their strategies to the realities of the markets in which they operate.

As world leaders gather in Davos, the 2025 SEC Newgate Impact Monitor provides timely intelligence for organisations seeking to manage reputational risk and seize opportunity in an era defined by fragmentation, localisation, and rising stakeholder expectations.

السابق
توقعات الجمهور تجاه التوطين تشكّل عاملًا حاسمًا لنجاح الشركات في المملكة العربية السعودية، وفق تقرير «رصد التأثير 2025» الصادر عن سيك نيوجيت
التالي
مجموعة سوميه التعليمية تُعيّن “سبنسر كولز” في منصب الرئيس التنفيذي الجديد