Strategic treasury solutions power growth in the Middle East
The Middle East is in the midst of an economic transformation. From Saudi Arabia to the United Arab Emirates (UAE), ambitious national strategies are diversifying these economies,1 2 as countries invest in infrastructure and promote advanced technology, renewable energy, manufacturing and tourism.
These efforts are attracting significant global investment and trade flows, creating opportunities for multinational corporations (MNCs) drawn to the Middle East’s potential, as well as for homegrown businesses that are increasingly global in their outlook, according to Lori Schwartz, Global Head of Treasury Services at J.P. Morgan Payments.
“Strategic initiatives like Saudi Vision 2030 and We the UAE 2031 are creating investment opportunities, and as a result, hundreds of billions of dollars are flowing into the region,” says Schwartz. “At the same time, there are efforts to create financial and regulatory frameworks to meet the requirements of global multinationals. These developments together make the Middle East a dynamic and very exciting region.”
As the Middle East grows in prominence as a trading hub for international businesses, its economic evolution is naturally accompanied by operational complexities, especially for corporate treasurers, who now wear many hats. As treasurers work more closely with various corporate teams and leadership, they must adapt to fulfill an evolving mandate.3
This includes managing a variety of risks, navigating the digital transformation process, ensuring regulatory compliance and prioritizing cybersecurity—all while managing global cash positions, optimizing working capital and leveraging data to fund growth and predict future cash flow needs. In an evolving risk and compliance environment, treasurers must also focus on money laundering laws, fraud monitoring and reporting, explains Schwartz.
“The treasury role is moving from a transactional, back-office function to becoming a key strategic partner for the C-suite,” notes Schwartz. “Whether advising on capital structures, mergers and acquisitions or working capital, treasurers now play a central role in corporate decision-making.”
For corporate treasurers in the Middle East,4 this involves navigating multiple markets and their specific licensing regimes and regulatory mechanisms, as well as multiple currencies, exchange controls, clearing systems and banking partners—complex conditions that can trap the free flow of cash and liquidity.
Meanwhile, treasurers must also adapt to the rapidly evolving payments space. Technology is driving the adoption of real-time payments and innovations such as central bank digital currencies (CBDCs), which, by eliminating intermediaries and facilitating instant settlements, have the potential to transform how money exchanges hands and crosses borders.
“As the speed of payments accelerates, treasuries will need to keep pace. This will require real-time visibility, automated reconciliation and straight-through processing, supported by banks with strong digital guardrails,” says Schwartz.
This is especially true in the Middle East, where markets including Saudi Arabia and the UAE are laying the framework for open banking, which will facilitate greater sharing of financial information between organizations. It could also lead to more efficient and cost-effective ways to send remittances, and innovations like account-to-account (A2A) payments could strengthen Islamic finance due to improved credit scoring and the creation of personalized, shariah-compliant products, says Schwartz.
“Ambitious strategic visions and the fast-paced evolution of payments technology mean treasurers will need to adapt their cash management strategies to align with the region’s evolving landscape, with an emphasis on data-driven forecasting that helps treasury teams predict and preempt economic change,” she says.
To help clients navigate this landscape and enable the seamless flow of cash throughout the region, J.P. Morgan Payments is deepening its longstanding commitment to the Middle East with the launch of a new booking location in the Abu Dhabi Global Market (ADGM).
The launch follows the approval of a Category 1 banking license by Abu Dhabi’s Financial Services Regulatory Authority for J.P. Morgan’s regional hub in the emirate.5
The new booking location will better support clients in building sophisticated treasury operations. It enables structures such as regional treasury centers and in-house banks, which can enhance operational and liquidity controls.6
These solutions are underpinned by advanced technology designed to give corporate treasurers the efficiency, visibility, control and security they seek. Kinexys by J.P. Morgan, the firm’s industry-leading blockchain business unit that is changing how information, money and assets move around the world, is one key innovation.
Kinexys, which has been adopted by eight of the largest financial institutions in the Middle East and North Africa, includes the Kinexys Digital Payments platform, which offers on-demand, multi-currency, cross-border payments between corporate accounts, with 24/7 settlement. It also enables programmable payments, which can be triggered at certain times or keyed to events, increasing efficiency and automation. In an industry first, the Kinexys Digital Payments platform is integrated with J.P. Morgan’s FX services, so clients can execute near-real-time FX transactions and settlements on-chain in USD, EUR and GBP, with plans to expand this service to more currencies.7
Additionally, Kinexys Liink, J.P. Morgan’s permissioned payments information network,8 provides fast and secure account validation that streamlines the movement of funds across borders and reduces the risk of errors and fraud.
The complexities of cross-border commerce—in an operating environment clouded by geopolitics and macroeconomic uncertainties—and the rapid pace of digital innovation demand that treasurers evolve from operational managers to strategic enablers of growth.
The Middle East’s ambitious growth agenda calls for a treasury that is equally enterprising, agile, flexible and technologically advanced. In this dynamic environment, choosing the right financial partner is critical.
“Our commitment to the region is unaffected by geopolitical headwinds or short-term macroeconomic turbulence,” says Schwartz. “Our global reach and deep regional expertise allow us to help both MNCs and local clients navigate financial markets in the region and around the world with confidence.”
J.P. Morgan Payments serves not only as a provider of tech-enabled solutions, but also as a long-term strategic partner that combines a global footprint with deep regional knowledge, and it is dedicated to helping clients succeed by helping to build the treasury of the future, today.
“We partner for the long term, which allows us to help our clients navigate change and seize new opportunities in one of the world’s most important and fastest-growing markets,” says Schwartz.
1 Saudi Vision 2030
2 UAE Economy
3 Treasury Leaders on Skills, the Evolving Role
4 Three trends revolutionizing treasury in the Middle East
5 JP Morgan receives approval from ADGM to upgrade licence
6 Three trends revolutionizing treasury in the Middle East
7 Kinexys by J.P. Morgan flourishes in the MENA region
8 Kinexys Liink
