Middle East CFOs are more optimistic about the economy than their
counterparts in the West, with more than half positive about the prospect of
growth, Deloitte said on Monday.
CFOs in the Middle East are less averse to risk now than at any time in
2010, the company said in its Global CFO survey. Some 43 percent of those
polled said now is a good time to take greater risk on to their balance sheets,
compared to 36 percent in Q1 2010 and 29 percent in Q3 2009.
Two thirds of respondents also expected to raise financial leverage over the
next 12 months and said they were likely to issue debt or arrange for new
facilities in the year ahead.
CFOs are also more positive about debt and their ability to repay it.
Compared to Q1 in 2010, when 42 percent thought Middle East banks were
overleveraged, only 29 percent of those polled feel that way now.
Bank borrowing continues to be the most attractive source of financing among
respondents, with 41 percent rating bank lending as attractive.
“This feeling of optimism is reflected in the region generally with plans
for growth moving ahead and GDP expected to continue to increase in the coming
year,” James Babb, partner and CFO Program Leader for Deloitte, said in a statement.
“This positive climate is being supported by strong spending on
infrastructure development from the region’s governments, underpinned by
resilient oil prices.”
The report said 61 percent of CFOs surveyed expected mergers and
acquisitions growth in 2011, though that number was down from 71 percent the
previous year.
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