Treasury, trade and all points in between

Dubai, February 2018

Once again to Dubai for another GTR Trade Finance and Treasury conference. And what a difference a year makes!

The trade finance community in the UAE (and wider GCC) is much more positive about growth and investment across the region than this time last year. Delegate polls showed 65% plus votes in favour of more investment in people and technology and rising general business confidence.

Yes the price of oil, stable at $60+, has much to do with it but various factors – the impact of reforms in Saudi Arabia, the smooth introduction of VAT in the UAE, no worsening of tensions with regional geopolitics and others – are all playing their part. Other conference themes had a more familiar ring, some positive, some less so.

• Bank liquidity for larger corporates remains strong but patchy for SMEs, especially start-ups and early-stage companies
• The impact of technology on physical trade processes is being more keenly felt in the automation of documentation, speedier payments and receivables management and enhanced logistics and port management
• Regulation and compliance are burdensome, especially that bugbear of many a corporate treasurer, KYC, and standardisation is still elusive
• Supply chain finance is still a developing story balanced by greater awareness of trade credit insurance

The ACT treasury workshop at the conference featured 4 experienced corporate treasurers debating key issues in relationship management, current trends in cash and liquidity management, risk management and the strategic treasurer. Treasurers bring different perspectives to these areas of course and our panel grasped the opportunity to explain their approaches to a mainly finance institutional audience. And the key messages?

• understand your business
• be clear about your risk appetite
• keep your cash forecast close and your cash closer still
• use technology to improve treasury performance

Above all, communicate – with your board, with stakeholders and with your lenders!

Hopefully we’ve brought some treasury light into the trade finance world!