Corporate treasury initiatives
MENA oil producers’ treasuries face very different
challenges from those in regions such as Asia and
countries such as Australia. Rather than having to
devote their energies to cost saving and liquidity
optimisation, they are opting to invest in efficiency more
generally. As a result, there is a concerted effort among
MENA oil producers to bring their treasury and financial
processes to the level of automation and efficiency of
global oil multinationals.
For example, some national oil companies in MENA
operate as multiple autonomous entities, but are now
looking to centralise their financial processes. This is not
a trivial task, as it is not uncommon for companies (and
subsidiaries of companies) in MENA to each operate
their own home grown ERP systems. This typically
results in rather manual and time-consuming processes
when compared with using a major industry-standard
ERP system.
As a result, many oil company treasuries in MENA are
keen to review their processes in conjunction with a
banking partner experienced in global best treasury
practice. These reviews are then often used as the
basis for the implementation of a leading commercial
ERP system. This in turn enables the automation and
centralisation of processes, as well as opening the door
to the adoption of industry standards such as SWIFT.
Published: March 2016
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