PWC – Middle East Working Capital Study, 2023

PWC's Middle East Working Capital Study for 2023 reveals a strong year-on-year increase of 21% in working capital, driven by the global pandemic. The study highlights how high oil prices, peaking at $116 per barrel in 2022, have boosted the economies of oil-non-producing countries in the region. The UAE and KSA have spearheaded national visions and diversification agendas for 2031 and 2030. However, despite the robust business activities in the region, there has been a decrease of 40% in merger and acquisition (A&M) activity in the first half of 2023 compared to 2022, due to global macroeconomic uncertainty. This uncertainty, coupled with a downturn in oil prices and inflationary pressures, has put pressure on companies' profitability and led to an increased focus on working capital management. PWC emphasizes the importance of businesses prioritizing efficient management of working capital in order to strengthen corporate resilience and support future growth. This includes treating working capital optimization as a strategic pillar, investing towards future growth, and focusing on areas such as sustainability and digitization.