Elena Gramatica: People Respond More Positively When Companies Manufacture and Source Locally

Interview with Elena Gramatica – Founder and CEO, SEC Newgate Middle East Deadline

1- Your research shows that Saudi Arabia ranks among the most optimistic countries globally, with almost all respondents believing the country is heading in the right direction- How does that level of optimism shape public expectations of businesses operating in the Kingdom?

From the 20 countries surveyed in the 2025 SEC Newgate Impact Monitor, Saudi Arabia is one of the highest ranking when it comes to optimism- At least 9 in 10 of those asked think their country is heading along the right track (compared with the global average of 48%).

This positive outlook is due to the Saudi Arabia’s visionary leadership, and a clear roadmap for the country’s long-term development- The ambitions of Vision 2030 are woven throughout every aspect of society, advancing business opportunities across all sectors and helping the Kingdom to become a more attractive proposition to international organisations- There is an expectation that businesses will reflect this energy and enthusiasm and leverage Saudi Arabia’s unique strengths as they support the country’s ambitions to become a global leader.

2- Localization emerged as one of the strongest trust drivers in Saudi Arabia, with clear preference for companies that manufacture, hire and source locally- From your perspective, has localization shifted from being a policy ambition to a reputational necessity for businesses in the Kingdom?

We saw in this year’s survey results that over 80% of those asked responded more positively to a company when they source components or raw materials, and manufacture products locally- People have a deeper knowledge and understanding about our collective impact on the planet, and as a result, hold companies accountable for how they operate- Transparency is key and this is how an organization builds a stable, long-term reputation.

With Saudi Arabia diversifying its economy, empowering citizens and creating a vibrant environment for communities to thrive, the country is seeing local businesses prosper and investment by global organisations- It is building the infrastructure so that organisations can consider the local supply chain first- Residents recognise this and are looking closely to businesses to support this area of growth.

3- The Impact Monitor marks a shift away from traditional ESG language toward what you describe as ‘real-world impact’- Why is that distinction relevant in markets like Saudi Arabia today?

This is the fifth annual global study by SEC Newgate looking at global sentiment towards how corporates and governments are responding to ESG-related challenges – and how their actions are shaping community perceptions.

We have migrated from ‘ESG Monitor’ to the ‘Impact Monitor’, to reflect the shifts we have seen driven by the realities of a world where global narratives are giving way to local priorities and pressures- It is also to address the fragmentation of ESG priorities and to ensure our approach remains relevant and actionable in today’s complex environment.

In recent years it has become apparent that people are increasingly looking for positive outcomes and we wanted to reflect this in the 2025 survey, going beyond traditional ESG parameters focusing on responsibility, impact and local relevance.

We surveyed residents of Saudi Arabia for the first time, a direct reflection of the country’s increasing global influence- The results were consistent with the other 19 countries that we surveyed: a single global narrative for ESG no longer works- We saw with all the results, and including in Saudi Arabia, that people interpret what ESG means to them via their local lens, and they judge companies through very local expectations.

4- Saudi Arabian respondents also expressed strong positivity toward the energy transition, alongside high expectations for transparency and responsible conduct- How should companies communicate their climate and sustainability efforts in a market that is ambitious but not highly discerning?

Although ESG is the globally recognized framework for companies to communicate their commitments around environmental stewardship, social responsibility and governance, there is still a universal divide in how this translates to everyday life- ESG remains of interest across the Kingdom with 82% of those asked looking in know more about the associated issues, so there is still further work to be done by the business community to make ESG more accessible and relatable.

However, what is clearly evident through climate change, is the negative impact humanity can have on the world’s ecosystem- People expect companies to prioritise sustainable business practices and communicate transparently- In relation to the energy transition in Saudi Arabia, an overwhelming majority (88%), feel positive towards it, with around half believing that businesses are placing the right level of emphasis on environmental actions.

5- Based on what this research reveals, what is the biggest mistake you see international companies making when they enter or expand in Saudi Arabia, and what does ‘getting it right’ look like in practice?

Saudi Arabia is a rich and vibrant country, with a sense of community like no other- It is built on a foundation of mutual respect between its citizens, welcoming those from the international

community who are willing to invest their time and expertise in supporting the country’s ambitions for growth.

Thanks to Saudi Arabia’s visionary leadership and their roadmap for the future, the global business community has a deeper understanding of the Kingdom’s unique strengths, but there is still a divide between perception and the opportunities that the country offers- It goes without saying that international organisations need to spend time in the country and with its residents, to truly understand what makes the culture unique and the opportunities available- Saudi Arabia also benefits from a relatively untapped pool of highly-educated and ambitious young people, with a drive to support the country’s future development goals.