Middle East Benchmarking Study 2012
Findings revealed
Would you be surprised to find out that 46% of companies in the Middle East achieve STP rates that are less than 50%? And did you know that 45% of companies in the region use scorecards to monitor their suppliers?
This is according to the findings of Treasury Today’s Middle East Benchmarking Study 2012, in association with J.P. Morgan. Building on the results of last year, the Study looks at how corporates are operating in the region, despite the political and economic unrest in certain countries.
According to this year’s Study, the top three regional treasury priorities in 2012 are:
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Securing long-term funding.
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Cash pooling.
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Maintaining strong bank relationships.
In particular cash pooling remains a big challenge for businesses operating in the Middle East; nearly 80% of respondents are not pooling their cash.
Looking at Key Performance Indicators (KPIs), Middle East corporates are prioritising increasing cash flow forecasting and visibility, whilst cutting transaction error rates. Moreover, high on the agenda are counterparty risk KPIs as companies continue to navigate difficult business conditions.
Some unexpected findings also emerge from the data. Despite operational difficulties on the ground, the supply chain has decreased in importance for Middle East corporates. Furthermore, respondents are no longer as worried about foreign exchange risk as they were a year ago – a surprising result given the Arab Spring and the Eurozone crisis.
To find out more about trends in the region, such as corporate dissatisfaction with the range of banking services on offer or the increased interest in technology, order your copy of the findings today. In the Study, you will also find corporate case studies that demonstrate how companies in the Middle East are using benchmarking to improve their operations.
Almost 100 corporates responded to the Study, with over 60% of submissions being completed by the Group Treasurer, Regional Treasurer, or CFO/Finance Director. We would like to take this opportunity to thank all participants, and J.P. Morgan, for once making this Study such a huge success.
Interested in Benchmarking in other regions? Why not take part in this year’s European Corporate Treasury Benchmarking project?