Treasury Priorities for Multinational Corporations - Middle East and Africa

8 | Treasury Priorities for Multinational Corporations Chapter 2: Treasury Function Set Up In an increasingly volatile and interconnected global economy, the strategic setup of a corporate treasury function is no longer merely an administrative task, but a critical determinant of an organization’s financial resilience, operational efficiency, and competitive advantage. A well-designed treasury setup transcends basic cash management, it underpins a company’s ability to navigate market fluctuations, manage complex financial risks, optimize liquidity, and support strategic growth initiatives. The fundamental structure of treasury – whether centralized, decentralized, or a hybrid model – directly impacts a multinational corporation’s agility in allocating capital, its visibility over global cash flows, and its capacity to leverage financial resources effectively. Beyond structure, the operational framework encompasses robust governance, clear policies, efficient processes, and the strategic deployment of technology. These elements collectively empower treasurers to evolve from transactional managers to strategic partners, providing invaluable insights that inform executive decision-making. Treasury centralization in MEA Treasury decision-making largely remains decentralized across the respondents, with majority indicating no immediate plans to alter this structure. However, among those considering changes, there’s a clear trend towards centralizing treasury activities, with a notable interest in establishing regional treasury centres within the MEA region. A noticeable trend inMEA is the establishment of Regional Treasury Centers (RTCs), a specialized formof Shared Service Center (SSC), in strategic hubs. The United Arab Emirates (UAE), particularly financial centers like Dubai (DIFC) and Abu Dhabi Global Market (ADGM), is a preferred location due to its business-friendly environment, political stability, and favorable tax regime. Is Treasury decision making centralized in a RTC in MEA? No Yes 69% 31% U AE is the overwhelming hub for MEA, MENA, and global treasury mandates in the region.