The economic and treasury landscape across Saudi Arabia and the Middle East continues to transform as innovative reform initiatives like Saudi Vision 2030 and We the UAE 2031 pave the way for advancement.^1,2 The country’s Public Investment Fund is expanding its global investments, thereby creating new opportunities and diversifying the Saudi Arabian economy by focusing on specific sectors such as real estate, technology and mining.³

The transformation of treasury in the Middle East is not a temporary change but a step towards a future-ready economy, characterized by economic diversification, foreign direct investments (FDI), infrastructure development and regulatory changes. J.P. Morgan has a committed and long-standing history of serving clients in the Middle East, and has more recently developed a range of Sharia-compliant products to address the needs of this growing market.

Technology transformation across the region

Corporate treasurers are leveraging sophisticated technologies to create a dynamic and resilient treasury environment. The journey from a reliance on checks and physical signatures to the adoption of cutting-edge digital financial technologies represents a seismic shift in treasury management across the Middle East.

Businesses are becoming more involved in competing with banks and fintech’s to offer digital, connected and user-friendly solutions. This includes the expectation of further control, transparency and improved efficiency across operations.

Treasurers are looking for the right solutions to manage cash, liquidity, financial risk and operations to help their organizations thrive. In Saudi Arabia, access to cross-border liquidity optimizes global cash consolidation, enabling companies to more effectively manage their balances with better visibility which can help unlock value from their cash.

The role of liquidity

Saudi Arabia has been a major player in the global oil market and engages in significant trade with countries around the world. Saudi Vision 2030 is helping transform the country into a global trading hub, fostering a more vibrant and sustainable society across various sectors, including renewable energy, tourism and entertainment.

Cross-border payments facilitate the import and export of goods and services, enabling companies to transact with international partners efficiently. Companies have a huge opportunity to optimize liquidity in the region and better serve as a gateway for trade and investment.

Cross-border physical cash concentration

Doing business in EMEA has always required a level of regional expertise, navigating FDI and a multi-currency market with a complex regulatory structure. With 100+ years of working in the Middle East, our efficient cross-border payment systems help companies comply with international regulations and standards, helping to reduce the risk of financial crime and ensuring transparency in financial transactions.⁴

Since its launch in 2022, the J.P. Morgan Cross-Border Physical Cash Concentration tool has been helping clients in Saudi Arabia link their account balances to global liquidity systems. This tool includes a cross-border sweeping feature, which allows companies to automatically move or consolidate their funds from one account to another at a specific time during the day or at the end of the day.

Process flow

1. At a pre-agreed time, J.P. Morgan’s Liquidity Platform determines the sweep amount needed based on:
   • Participant account balance
   • Target balance required
   • Minimum or maximum sweep settings
2. J.P. Morgan initiates the movement of funds between the accounts held in different jurisdictions

Support beyond liquidity

As the economies in EMEA diversify and expand, J.P. Morgan Payments can help corporate treasuries navigate current and future changes. Our innovative payments solutions are powered by the advanced security and expertise you expect to help you thrive in-region and across the globe.

Our Trade and Working Capital Solutions help streamline global trade, enhance cash flow, facilitate payments, manage risks and access liquidity to drive growth.

With Cross-Currency (FX) Solutions from J.P. Morgan Payments, you can send payments in 120 currencies and receive in 40+ currencies with near real-time visibility into live conversion rates.⁵ Streamline global transactions with fast, simple and secure API-powered cross-border payments.