Treasurers in the Middle East are divided on whether they should be more active in supporting trade. This key question was put to the Association of Corporate Treasurers’ Middle East Treasury Summit 2024 by moderator Amr El Haddad (pictured above, far left), head of transaction banking at National Bank of Kuwait. An audience poll resulted in a 50-50 split.
This was at the start of session entitled 'How treasurers can better support trade within the Middle East and beyond' and a significant focus of the dialogue was on the digitisation of trade networks and the urgent need for a unified approach to improve efficiency in cross-border operations.
One key point raised was the importance of standardising documentation and accepting digital documents to reduce operational complexities and streamline processes. Raghav Khajuria (pictured above, far right), director, new growth initiatives, DP World Trade Finance, pointed to bills of lading as a perfect example.
“Digital bills of lading are essential for improving efficiency in trade. The traditional paper-based bill of lading is cumbersome and filled with information that complicates processes. If shipping lines, customs, regulators, corporates and financial institutions collaborate to adopt electronic bills of lading, we can significantly enhance efficiency and mitigate inherent risks,” he said.
With so many recent technologies recently launched with different applications digitising business processes, the discussion also highlighted the need for a more selective approach to adoption.
“When you have a lot of people coming up with a lot of different things, some will stick and scale and work well and some will end up in the abyss; that’s just a part of the innovation curve process,” said Viacheslav Oganezov (pictured above second from left), co-founder and CEO of UK-based fintech Finverity.
Digital bills of lading are essential for improving efficiency in trade
Speakers also addressed the challenges faced by SMEs in accessing working capital due to perceived risks and a lack of credit history. They proposed innovative solutions that leverage logistics capabilities to mitigate these risks and provide financing options.
El Haddad also emphasised the ongoing importance of supply chain finance in providing these kinds of businesses with the necessary liquidity to thrive, fostering innovation and job creation.
The event, held for the first time at Dubai’s Grand Hyatt Hotel, heard from Simon Ballard, chief economist, First Abu Dhabi Bank, who gave a macroeconomic update on the Middle East and the world in 2024 set against a looming US election. Ballard said the key story for the GCC region is ongoing diversification, with the non-oil sectors driving growth, while the UAE leaving the anti-money laundering FATF (Financial Action Task Force) grey list has improved investment sentiment. More than 850 treasury and finance professionals from 25 countries representing 340 companies attended this year’s conference on September 24-25, with 95 speakers. The attendees from non-financial corporates increased 25% on last year.
Emma Procter is a freelance business journalist based in Dubai
