Leveraging Technology and Regional Infrastructure for Competitive Advantage
As GCC countries accelerate economic diversification and regional integration, corporate treasury functions face mounting pressure to modernize operations, enhance efficiency, and support strategic growth initiatives. From implementing sophisticated treasury management systems to leveraging regional payment infrastructure, treasury leaders must navigate a complex transformation landscape.
The Business Case for Treasury Modernization
Corporate treasurers across the GCC are expanding their remit beyond traditional cash management to become strategic partners in business growth. This evolution is being driven by several factors:
Regional Expansion Complexity
As noted by Deutsche Bank, “The expansion of their business is resulting in treasurers having to think beyond managing cash locally.” GCC companies are increasingly operating across multiple jurisdictions, requiring sophisticated multi-currency management, cross-border payment optimization, and consolidated cash visibility.
Competitive Pressure
Fintechs built on state-of-the-art technological architecture are setting new standards for payment speed, transparency, and user experience. Traditional corporates running on legacy systems must modernize to remain competitive.
Regulatory Evolution
Increasing compliance requirements across tax, anti-money laundering, and reporting standards demand robust systems capable of capturing, analyzing, and reporting transaction data accurately and efficiently.
Strategic Value Creation
CFOs and boards increasingly expect treasury to contribute to strategic objectives—optimizing working capital, reducing funding costs, managing financial risks, and enabling growth initiatives—requiring analytical capabilities beyond basic cash management.
Treasury Management System Selection and Implementation
Selecting and implementing the right Treasury Management System (TMS) is foundational to modernization efforts. The global TMS market offers solutions ranging from comprehensive enterprise platforms to specialized point solutions.
Key Evaluation Criteria
Integration capabilities: Seamless connectivity with ERP systems, banking platforms, and regional payment infrastructure like AFAQ
Scalability: Ability to grow with the business across products, geographies, and transaction volumes
Cloud vs. on-premises: Cloud-based solutions offer scalability and lower upfront costs but require careful consideration of data residency and security requirements
Regional support: Vendor presence and support capabilities in GCC markets, understanding of local banking relationships and payment systems
Advanced analytics: Forecasting, scenario analysis, and reporting capabilities supporting strategic decision-making
Leading Platforms
Major TMS vendors serving GCC markets include SAP, Oracle Treasury, Kyriba, and regional specialists. Each offers distinct capabilities suited to different organizational profiles and requirements.
Implementation Success Factors
Research on treasury transformations highlights several critical success factors:
Executive sponsorship: Strong support from CFO and senior leadership
Clear scope definition: Realistic timelines and well-defined deliverables
Data quality: Clean, accurate data as foundation for system effectiveness
Change management: Comprehensive training and stakeholder engagement
Phased approach: Iterative implementation reducing risk and enabling learning
Leveraging AFAQ for Regional Treasury Optimization
The AFAQ regional payment system represents a transformative opportunity for GCC corporate treasurers. As discussed earlier, this infrastructure enables:
- Simplified cross-border payments within GCC
- Real-time gross settlement across connected markets
- Enhanced cash visibility across regional operations
- Foundation for regional cash pooling and concentration structures
- Reduced reliance on correspondent banking arrangements
Implementation Roadmap
Corporates should assess their current payment flows, engage with banking partners on AFAQ connectivity, update TMS configurations to support AFAQ routing, and develop new treasury processes optimizing regional liquidity management.
Automation and Straight-Through Processing
Manual processing – file uploads, reconciliations, payment approvals – represents significant operational risk and resource consumption. Leading corporates are implementing automation across treasury workflows:
Payment Automation
Direct triggering of payments from ERP systems eliminates manual file handling, reduces errors, and accelerates processing. Tabby’s treasury transformation achieved merchant payments in under 60 seconds through automation and instant payment systems.
Cash Forecasting
AI-driven forecasting tools analyze historical patterns, seasonal trends, and business drivers to produce more accurate cash projections, enabling better liquidity decisions.
Bank Reconciliation
Automated reconciliation solutions match transactions, identify exceptions, and streamline month-end close processes, freeing treasury staff for value-added activities.
FX Management
Automated FX execution within pre-defined parameters ensures optimal timing and rates while maintaining risk controls.
Advanced Analytics and Business Intelligence
Modern treasury platforms incorporate sophisticated analytics enabling strategic insights:
Cash position analysis: Real-time visibility across accounts, currencies, and entities
Working capital optimization: Identifying opportunities to reduce DSO, optimize DPO, and improve cash conversion cycles
Funding cost analysis: Comparing funding alternatives and optimizing capital structure
Risk analytics: Measuring and monitoring FX exposure, interest rate risk, and counterparty risk
Performance dashboards: KPI tracking for treasury efficiency, effectiveness, and strategic contribution
Cybersecurity and Fraud Prevention
As treasury operations digitize, cybersecurity becomes paramount. PwC’s GCC Banking Sentiment Index 2025 found fraud concerns are rising, creating a trust gap that must be addressed with stronger safeguards.
Best Practices
- Multi-factor authentication for all payment and system access
- Segregation of duties in payment approval workflows
- Real-time transaction monitoring and anomaly detection
- Regular security assessments and penetration testing
- Comprehensive training on social engineering and fraud schemes
- Clear incident response procedures
Building the Treasury Team of the Future
Treasury transformation requires not just technology but also people and skills development. As one Euromoney analysis noted, “”Treasurers, often operating with small teams, face growing pressure to expand their roles into strategy. However, the increasing pace of digitization brings a new set of challenges, particularly in finding team members with the right technical skills.
Key Competencies
- Technology fluency: Understanding capabilities and limitations of treasury systems
- Data analytics: Ability to derive insights from financial and operational data
- Strategic thinking: Moving beyond transactions to value creation
- Change management: Leading transformation initiatives effectively
- Risk management: Identifying, measuring, and mitigating financial risks
Talent Strategies
Many treasurers are supplementing core teams with consultants and third-party providers to handle specialized technical work, enabling focus on strategic objectives. Others are investing in training programs to upskill existing staff on new technologies and analytical techniques.
The Path Forward: Strategic Transformation
Treasury modernization is not a one-time project but an ongoing journey. Leading corporates are taking a strategic, phased approach:
Phase 1: Foundation (6-12 months)
- Assess current state capabilities and gaps
- Define target operating model and technology architecture
- Select and implement core TMS platform
- Establish basic automation and controls
Phase 2: Optimization (12-24 months)
- Expand automation across treasury workflows
- Implement advanced analytics and forecasting
- Integrate with regional infrastructure (AFAQ)
- Enhance cybersecurity and fraud controls
Phase 3: Strategic Value Creation (Ongoing)
- Leverage analytics for working capital optimization
- Support M&A and expansion initiatives
- Drive continuous improvement in treasury operations
- Explore emerging technologies (AI, blockchain, digital currencies)
Conclusion: Treasury as Strategic Enabler
As GCC countries pursue ambitious economic transformation agendas, corporate treasury functions must evolve from back-office operations to strategic enablers of growth. By investing in modern technology platforms, leveraging regional infrastructure, implementing automation, and developing analytical capabilities, treasurers can deliver measurable value to their organizations.
The question is not whether to modernize treasury operations but how quickly and effectively to execute the transformation. With the right strategy, technology partners, and organizational commitment, GCC corporates can build treasury functions positioned for success in an increasingly complex and dynamic business environment.
Want to know more?
Visit our MORS Solution page, Book a MORS Demo or contact our Sales & Project Management, GCC Countries Elliott Cherneski
References:
- Deutsche Bank: GCC: four trends corporate treasurers should be aware of. https://flow.db.com/cash-management/gcc-four-trends-corporate-treasurers-should-be-aware-of
- HSBC: Tabby’s Treasury Transformation Creates Platform for Rapid Growth. https://www.business.hsbc.ae/en-gb/insights/innovation-and-transformation/tabby-s-treasury-transformation-creates-platform-for-rapid-growth
- Barclays Investment Bank, GCC: New payment system could drive treasury transformation. https://www.ib.barclays/our-insights/middle-east-payments-update.html
- Euromoney, Transaction banking: 2024 wrap-up, 2025 warm-up. May 7, 2025.
- PwC Middle East: GCC Banking Sentiment Index 2025. https://www.pwc.com/m1/en/publications/banking-sentiment-index/gcc-banking-sentiment-index-2025.html
- Data Insights Market: Treasury Software Market Expansion Strategies. https://www.datainsightsmarket.com/reports/treasury-software-541064