A promising outlook for the expansion of MENA Supply Chain Finance market


Supply Chain Finance (SCF) has progressed impressively over the past years. The slow growth in many financial markets and the credit crunch has made working capital optimization a necessity. Businesses are focused on improving liquidity management and expansion of funding sources, with markets both mature and emerging embracing it.

Looking at the MENA region and especially the GCC, the post oil-era is reshaping the market dynamics and offering a promising outlook for the expansion of the SCF landscape. Regional companies are coming to terms with the need to optimize their liquidity and have started to follow the lead of prominent multinational firms.

The key to achieving working capital optimization is dependent on a healthy supply chain both locally and internationally, fueled by resilient relationships between Suppliers and Buyers, coupled with technological efficiency. MENA’s strategic geographical position as a link between the east and the west, along with stable economic growth, make it one of the most suitable markets for Supply Chain Finance to reach its full potential, with significant interests now seen in FMCG, construction, manufacturing, retail and automotive sectors.

Technology is reforming the Supply Chain Finance industry by offering advantages to all stakeholders; from accelerating inter-continental trade and breaking down time taken to structure programs, to enabling enhanced transparency and facilitating real-time monitoring of transactions. Customization has also taken precedence, with providers offering tailored solutions based on the requirement of the Supplier/Buyer and Funding partner. These advantages are steering a change towards making working capital solutions more value-based, rather than just cost-based, offering abundant opportunities for all the stakeholders.

Poised for the optimistic future ahead, Tawreeq Holdings offers comprehensive, Sharia-compliant, technology-enabled solutions catering for all key stakeholders in the Supply Chain Finance lifecycle. From solutions for Suppliers to manage their working capital liquidity needs and tailored solutions for Corporates to match their payables and receivables cycles, to offering unique investment opportunities in Trade and Supply Chain Finance through assets generated in the MENA region, Tawreeq Holdings takes a holistic approach towards efficient Supply Chain Finance Solutions for sustainable economic growth.