Treasury experts gathered in Saudi Arabia’s capital Riyadh, for an important briefing staged by the Association of Corporate Treasurers (ACT), where speakers explored the importance of sharpening financial management and professional development as the Kingdom diversifies its economy.
Senior treasury executives from the kingdom and across the Gulf region heard about key strategies on how to respond to the Saudi government’s Saudi Vision 2030 development and its impact on broad-based economic growth.
At the same time, representatives of international and national companies explained how improvements are needed in cash handling and transactions in an increasingly complex Saudi and Gulf economy.
Daniel Tromans, VP Treasury for Riyadh Air, said: “Working capital is critically important to any business. It's high on a treasury team's agenda and really can be existential in terms of ensuring the security of the treasury operations going forward.”
With Saudi Vision 2030 aiming to boost Saudi Arabia’s international business engagement, encouraging major foreign companies to install their regional headquarters in the kingdom, speakers focused on how good practice and technology together can aid treasury teams in this fast-growing economy.
Invest in yourself, it's the best investment you could ever make
As the financial sector in the Gulf undergoes progressive digital change, delegates were reminded about the importance of focusing on generating tech skills and investing in data analytics training for treasury teams, along with utilising blockchain technology and automation tools.
Commenting, James Adams, VP treasury for Chalhoub Group, a hybrid luxury goods retailer in the Middle East, said: “Invest in yourself, it's the best investment you could ever make.”
The value of ‘continuous learning’ was underlined by Alanoud Alhudaif, treasury manager in the Middle East for Lucid Motors, who added: “It never stops. There are always new revelations in new markets that need new knowledge in treasuries.”
I would like to become an active supporter of the campaign to demystify the language of banking, because I do think that would help not only all of you as treasurers but actually everyone who has to deal with banks in any capacity
With Saudi Vision 2030 and other regulatory regimes encouraging and facilitating the use of fintech, Annette Spencer, the ACT’s chief executive, said: “It struck me that regulation and technology are becoming friends and allies in a way that perhaps has not always been the case in the past.”
Solid relations between banks and corporates are an important foundation of doing business in Saudi and the Gulf region. Alhudaif stressed how her company had explored what services banks can provide regarding cash management, credit facilities investments and financial leasing products.
And Adams highlighted how treasurers can find common ground with bankers, who, while having different skill sets often have complementary expertise: “There is overlap [in] soft skills... people do move across from corporates to banking and banking to corporates,” he said.
Such common understanding was welcomed by Spencer: “I would like to become an active supporter of the campaign to demystify the language of banking, because I do think that would help not only all of you as treasurers but actually everyone who has to deal with banks in any capacity,” she said.
Securing funding at the right cost is needed for business growth, with strong credit profiles aiding negotiation in interest rates, loan fees and collateral requirements. All are negotiable, with the value of strategic partnerships with financial institutions and technology providers underlined at the event.
Treasurers also learnt of the importance of keeping on top of innovative solutions in areas like artificial intelligence, blockchain, data analytics, optimising financial processes, enhancing security and financial products or services.
Other sessions highlighted effective cash and liquidity management through using data-driven planning and forecasting, dynamic cash-flow management, emerging payment technologies for faster settlements and quicker collection of receivables. Supply chain optimisation and minimising idle inventories were another focus.
Hani Draye is a freelance journalist in Riyadh. Additional reporting by Keith Nuthall. Speakers at the event, held in Riyadh on 26 February 2024, included cloud solution provider DiXiO, Swift, treasury platform ZenTreasury, Chalhoub Group, Lucid Motors, food company the Almarai Company, First Abu Dhabi Bank, international food major BRF, MUFG bank, Golden Chicken Farms, Dentons, Riyadh Air, mobile games maker Sandsoft Games, Saudi Services for Electro Mechanic Works (SSEM) and Deloitte.
