By Andy Sambidge
Deloitte poll reveals 76% of finance chiefs see demand growing over next year.
More than two-thirds (69 percent) of chief financial officers (CFOs) in the Middle East are more positive about the financial prospects of their company than they were six months ago, a new Deloitte survey has revealed.
Seventy-six percent said they expected demand for their company's products and services to accelerate between now and the first half of 2011, the survey added.
"I believe that the region's governments in general are better resourced to deal with the effects of the financial crisis, and they took responsive action in doing that. That has produced an overall more stable outlook in the region relative to the other parts of the world," James Babb, CFO programme leader, Deloitte Middle East said in comments published by UAE daily Emirates Business on Sunday.
Deloitte's second Middle East CFO Survey, which polled 134 CFOs, showed that 90 percent believed regional governments had the ability to provide additional stimulus to the economies.
And 75 percent of CFOs said they expected cash flow for their companies to increase over the next 12 months.
While 65 percent saw an increase in cash flow of up to 20 percent, another 10 percent believed that cash flow would increase by more than 20 percent, the paper said.
Just seven percent expected a decline in cash flow, while 18 percent expect it to remain unchanged while most CFOs saw the supply and price of new credit to improve over the course of the next few months, it added.
According to the survey, which was conducted in March, 64 percent of regional CFOs now find bank borrowing attractive as a source of external funding for companies.
The survey seems to taken amoung business people who continues to follow the same business line. But majority of business people who diversified in to real estate , hospitality really burned the hands. Sorry to say the bankers too pumped more money to these sectors ignoring the base fundamental role of a banker - as safe custodian of funds. see the ratio of loan to deposits of all banks. The survey would have been very informative if taken across all industrial sectors and give a sector wise info rather than giving a genearl report. Just need to think there banks got bad eggs by way of loans which will never hatch to give returns as expected. But wil definitely explode one day