Treasury foresight at Saudi’s SEC supports Vision 2030
Published: Sep 2024
Best in Class Treasury Solution in the Middle East
Highly Commended Winner
Saudi Electricity Company
Photo of Abdulla Ahmed AlMulla, Marwan Ahmed Bayounis, Abdullah M AlBowilied and Abdulrhman Al-Fozan, Saudi Electricity Company.
Abdulrhman Khalid Alfozan
Enterprise Resource Solutions Division Manager
Saudi Electricity Company (SEC) is the leading electricity provider in the Kingdom of Saudi Arabia, entrusted with the generation, transmission and distribution of electric power across the Kingdom. Established in 2000, SEC plays a pivotal role in the nation’s infrastructure, ensuring reliable and sustainable electricity supply to residential, commercial and industrial sectors. With a robust portfolio of power plants and advanced grid infrastructure, SEC leverages cutting-edge technologies to meet the evolving energy needs of Saudi Arabia’s dynamic economy. Committed to innovation, efficiency, and environmental stewardship, SEC supports the Kingdom’s strategic objectives for economic diversification and sustainable growth.
The challenge
As Saudi Arabia progresses towards Vision 2030 – a strategic framework aimed at reducing the Kingdom’s reliance on oil and fostering economic diversification – key initiatives in digitalisation, automation, and innovation have become central. At Saudi Electricity Company (SEC), the urgency to modernise treasury processes has intensified. This involves replacing manual and disjointed systems with digital solutions that enhance cash visibility, mitigate risks and elevate efficiency. Leveraging fintech, Swift, and Stock Exchange solutions, SEC aims to enhance strategic financial decision-making in alignment with Vision 2030’s transformative goals.
The solution
The company introduced new fintech solutions, including automating all bank guarantees in collaboration with BWATECH, a SAMA-approved Saudi-based FINTECH company.
SEC also transitioned to Swift Alliance Lite-2 onboarding for payment gateways, a crucial step in the company’s digitalisation journey that has boosted the SEC’s ability to make secure and efficient global financial transactions.
In another innovation, Bloomberg integration streamlines SEC’s trades, covering investments, FX deals, borrowing and interest rate SWAP/hedging, while also automating market data management for LIBOR, SAIBOR, Treasury Yields and credit ratings etc.
The following partners are identified with the solutions implemented: SEC Internal SAP Treasury Team, SWIFT, SAB Bank, Saudi Fransi, Al Rajhi Bank, SNB-Saudi National Bank, BNP Paribas, Al Inma Bank, Bank Al Bilad, Riyadh Bank, GIB bank and BWATECH.
Best practice and innovation
Accurate month-end accrual calculations, especially for high-value deals, treasury facilities, and local and international SUKUKS, are now possible through Bloomberg automation. SEC manages its extensive banking relationships with all banks in the Kingdom and over 300 bank accounts using an in-house developed SAP application an automated bank account management (BAM) system.
The in-house developed SAP Shareholder Dividend Management system digitises tracking of SEC shareholders and their dividend payment status in alignment with Saudi Stock Exchange guidelines. SEC benefits from cash and investment management dashboards, providing comprehensive tools for leadership in treasury decision-making and liquidity forecasting.
Key benefits
Cost savings.
Headcount savings.
Process efficiencies.
Return on investment (ROI).
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Exceptional implementation (budget/time).
Quality accreditation achieved.
Improved key performance indicator (KPI) metrics.
“Treasury’s alignment with national and organisational visions, tangible outcomes in cash visibility and risk mitigation, and the pivotal role played by our dedicated treasury team collectively position us as a best in class treasury function.
The harmonious integration of digitalisation, automation and fintech has not only elevated our treasury practices but has set a standard for innovation and excellence in the industry,” says Abdulrhman Khalid Alfozan, Enterprise Resource Solutions Division Manager.
“I’m proud of Saudi Electricity Company’s Adam Smith Award-winning ‘Best in Class Treasury Solution in the Middle East.’
This recognition reflects SEC’s dedication to innovative treasury processes, best practices, digitalisation and enabling fintech solutions in treasury.
It represents the treasury department’s commitment to implementing optimal solutions and best practices to serve Saudi Electricity Company.”
Abdullah M. AlBowilied, Department Manager Corporate Treasury Operations
The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 389 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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