April 4, 2023 | Stamford, CT — Despite economic headwinds around the world, large companies in the Middle East and North Africa remain extremely positive in their outlook, with attention and resources focused on expanding and diversifying businesses, and growing revenues. 

While large corporates in North America, Europe and Asia express concerns about a deteriorating business environment, perceptions are much different in the MENA region, where more than 80% of large companies have a positive outlook for their businesses for the next six to 12 months. 

“Relative to their counterparts in other markets, corporates across the MENA region, including sovereign funds, are well capitalized and seem poised to take advantage of falling valuations for potential M&A opportunities,” says Gaurav Arora, Co-Head at Coalition Greenwich and coauthor of Growth Mindset in MENA Drives Demand for Banking Services.

For the largest companies, those opportunities could include assets in Europe and the United States. However, for the vast majority of corporates, international expansion means exploring opportunities within the Gulf Cooperation Council (GCC) or MENA region.   

Diversification Drives Companies to Seek Deeper Bank Relationship
The diversification of businesses across MENA is having an impact on companies’ relationships with their banks. For example, as corporates expand beyond the energy sector and across international borders, their businesses become more complex. They require more assistance in high-level functions like strategic planning, M&A and financing—in addition to the broader set of capabilities needed to support cross-border businesses. 

Going forward, large companies across the region will seek corporate banks who can provide strategic advice about topics ranging from financing strategies to prospective M&A targets. 

“Banks capable of providing a high level of service will develop a clear advantage in the fight for primary banking relationships and get a boost in the competition for ancillary businesses like trade finance,” says Ruchirangad Agarwal, Senior Relationship Manager at Coalition Greenwich and coauthor of the report.

Growth Mindset in MENA Drives Demand for Banking Services examines the economic outlook and business strategies of companies in the MENA region, and analyzes how those plans are affecting demand for corporate banking, cash management and trade finance services. The report concludes with a look at the ESG policies of companies in the region, including ESG adoption rates, areas of focus and key providers in the region.