Summary
This report presents the findings of the 2025 Middle East Working Capital Study, which analyzes the working capital performance of companies in the region. The study highlights that companies experienced a combined revenue growth of 6.3% year-on-year in 2024, driven by diversification efforts, particularly in non-oil sectors. It notes a significant increase in mergers and acquisitions, with 72% of CEOs planning to pursue acquisitions outside their core sectors in the next three years. The report emphasizes the importance of effective working capital management amidst geopolitical uncertainties and supply chain disruptions. Key findings include a 5.6% improvement in net working capital days, driven by reductions in accounts receivables and inventory holding times. However, it also points out that a substantial amount of cash remains trapped on balance sheets, indicating further opportunities for improvement. The report concludes by stressing the need for companies to focus on operational efficiencies to enhance liquidity and maintain competitiveness.
