Cash flow still a headache for a third of UAE CFOs

Many finance chiefs say customer/client insolvencies was the main reason - survey
GCC money, GCC dollar peg, GCC currency union, GCC unified currency
By Neil King
Wed 10 Jul 2013 01:41 PM

Cash flow remains a significant concern for UAE businesses, with research showing that three out of ten chief financial officers (CFOs) believe it to be the biggest internal issue they face.

James Sayer, director at recruitment specialist Robert Half UAE, who carried out the research, said: “Cash flow clearly remains a priority for finance leaders, particularly small and medium sized enterprises (SMEs) who rely heavily on liquid capital to keep business running as usual.

“With SMEs contributing to the UAE’s fiscal growth, job creation and economic well-being, it is essential for these organisations to be supported to keep the economy on track.”

In total, 75 CFOs from Dubai and Abu Dhabi took part in the research, and when asked which three factors have contributed towards their concerns about cash flow, 45 percent cited customer/client insolvencies as the main reason.

Nearly one in three (32 percent) of the CFOs claimed that they were concerned about access to investment – one of the main hurdles for SMEs and start-up businesses in the region.

Sayer added: “Access to financing has prompted cash flow concerns for one in three businesses which may be exacerbated if financial institutions fail to provide the necessary funds to the SME market.

“Companies need to ensure they have the right talent in place to provide prudent financial management, making their businesses as attractive as possible for lending institutions.”

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Last Updated: Thu 26 Jan 2017 01:27 PM GST

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