How UAE’s Al-Futtaim transformed a fragmented treasury into a centralised control centre
Published: Sep 2025
Best in Class Treasury Solution in the Middle East
Highly Commended Winner
Al-Futtaim
Photo of Tariq Hoodbhoy, First Abu Dhabi Bank collected the award on behalf for Al-Futtaim.
Olivier Boutet
Group Treasurer, Head of Global Treasury Centre
Al-Futtaim
UAE Established in the 1930s as a trading business, Al-Futtaim has evolved into a diversified and progressive privately held family business, headquartered in Dubai, United Arab Emirates.
in partnership with
The challenge
Al-Futtaim, based in Dubai, wanted to centralise its treasury function, particularly seeking to ensure Head Office had complete control over the balance sheet of each subsidiary.
The company was able to achieve centralised funding for its subsidiaries and the next step was to centralise the daily operations whilst creating a central treasury function which will create value for the entire organisation. Therefore, the treasury transformation was approached in a pragmatic way, where the low hanging fruits were implemented in the first phase. Whilst, in parallel, the team was working on getting the desired solution implemented by embracing technology, creating a risk management framework and building a robust governance structure for the company to adopt and embrace as they navigated the changes to be implemented across the company.
This was not a typical treasury centralisation as the company had a fragmented treasury operating model with several treasury activities being performed at business level, division level and group level. To add to the complexity, certain treasury activities were also performed in certain overseas markets exclusively.
The solution
The eventual goal was achieved, where Al-Futtaim took each business line with multiple brands in each country to be centralised and chose to work with banks which have a strong presence in these countries. Al-Futtaim, through its strong governance model, was able to manage all the changes it needed with its ERP, manage its banks and change management across its businesses. With all centralisations there is resistance by the businesses, however the treasury team worked jointly with the businesses to ensure the treasury vision was met and the changes made would enhance business performance. With treasury centralisation Al-Futtaim has been able to add an additional treasury governance structure across its entities and is able to manage all its treasury operations. The business can now focus on the day-to-day operations and let the company manage its financing and investment needs.
Best practice and innovation
Solution design – Al-Futtaim together with its relationship banks including First Abu Dhabi Bank (FAB), invested time in designing its treasury centralisation vision for the UAE. The investment paid off as they achieved visibility, control, centralisation of funds and a strong governance on its inter-company transactions, leading to better cash flow management and optimisation of yield.
Information dashboard – with the use of power BI, Al‑Futtaim has been able to provide bespoke consolidated information to its senior management, these reports are configured as per the company’s needs. Implementing the importance of cash flow monitoring to the business leaders it has seen growth across its business lines.
Risk management – consolidation of activities with fewer banks and the ability to monitor the business by the company has led to better controls on operational risks as anomalies are raised immediately. Consolidation of banks has further minimised cybersecurity risk. Financial risk has been mitigated by centralising funds and ensuring currency exposures are minimised or mitigated through hedging decisions.
Programme governance – Al-Futtaim collaborated with FAB and other banking partners for their cash centralisation globally. With a stringent governance model the transformation was delivered within the timelines and as per the agreed design.
Key benefits
Cost savings.
Headcount savings.
Process efficiencies.
Return on investment.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Number of banking partners/bank accounts reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Exceptional implementation (budget/time).
Improved key performance indicator (KPI) metrics.
The treasury centralisation project was a huge success for Al-Futtaim, as it resulted in improved liquidity management, enhanced visibility and control over cash flows, reduced operational risks and costs, and increased efficiency and productivity. The project also demonstrated the strong partnership and collaboration between Al-Futtaim, FAB and its other banking partners, who worked together to overcome the challenges and deliver a tailored solution that met the specific needs and objectives of the company. The project has been recognised as a best practice in the region.
Al-Futtaim’s treasury team aimed to further centralise their operations and develop a solution that could be seamlessly integrated across their diverse geographic footprint. Under the strong leadership of their Treasurer, the team defined a comprehensive strategy and implementation plan, executed with rigorous governance. FAB is proud to be a trusted partner in this transformational journey, and we look forward to continuing our collaboration by leveraging our presence across multiple markets to support their ongoing success.
in partnership with
The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2025 awards attracted 454 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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