Working capital trends in the Middle East

Organizations in the Middle East are currently navigating a complex landscape marked by persistent global uncertainty, regional priorities and climate-related risks. Despite easing inflation, exposure to global financial tightening places pressure on organizations. As a result, companies across the region continue to prioritize liquidity, resilience, and operational efficiency amid cautious optimism for growth acceleration.

We analyzed working capital trends across a sample of over 1,300 publicly listed companies based in the Middle East from 2020 to 2024, with breakdowns by sector and company size. Our analysis shows that working capital levels, measured by the cash conversion cycle (CCC), decreased from 94 to 89 days between 2020 and 2024.

Accelerating working capital excellence through technology and AI

As working capital becomes a strategic lever for growth and resilience, CFOs and CXOs are turning to technology for deeper insight and faster action:

Predictive analytics

Machine learning models anticipate cash flow gaps and recommend corrective actions before they occur.
Automation

Invoice processing, collections, and supplier payments handled by intelligent systems to speed up cycles and reduce errors.
Scenario planning

AI simulations allow leaders to test market and supply chain scenarios in minutes.
Sector-specific insights

Algorithms identify unique improvement levers for each sector, enabling tailored strategies.

How KPMG can help

We help organizations to rapidly identify and deliver quick wins and sustainable working capital improvement, for example through:

Rapid cash and working capital improvement diagnostics

that quickly identify sources of upside and the steps needed to achieve this value.
Implementation support

to help our clients define, develop and implement practical changes to their business.
A suite of digital tools

that can help our clients proactively identify and address working capital issues.