Chief monetary officers (CFOs) within the UAE are most involved in regards to the monetary impression of Covid-19 relatively than different nations within the Center East, a brand new survey by PwC exhibits.
The primary version of the Covid-19 CFO Pulse Survey exhibits that almost all of Center East CFOs consider the pandemic has the potential to considerably impression their enterprise operations and reduce the income or revenue of their organisation.
67% of CFOs within the Center East consider that Covid-19 has the potential to impression whereas 77% within the UAE are extra involved and 45% in Saudi Arabia really feel the impression is proscribed to particular areas of their enterprise.
“Companies all world wide are adjusting to working remotely, and though they’re prioritising monetary safety within the quick time period, CFOs nonetheless have a watch on the doubtless acceleration of transformation in areas corresponding to buyer expertise, digital and cybersecurity within the post-Covid-19 period,” Stephen Anderson, Center East Technique and Markets Chief, PwC Center East, stated.
Nevertheless, he stated that cybersecurity and privateness considerations are surprisingly low throughout the board – maybe indicating that many organisations are nonetheless within the preliminary ‘mobilise’ part of response – coping with the instant considerations across the availability of money.
About 78% of CFOs predict a lower in income on account of the pandemic whereas 9 out of 10 executives within the UAE predict a lower in income or earnings and greater than half are involved in regards to the potential for a world recession.
Executives trying to reduce prices are most probably to think about price containment and deferral or cancellation of investments significantly on capital expenditure whereas greater than half of them plan to reap the benefits of authorities help programmes, however this varies vastly by nation.
“Enterprise implications of Covid-19 embrace cost-cutting the place Center East CFOs will concentrate on money flows within the weeks and months forward and are most probably to think about price containment measures to guard the way forward for their enterprise. 92% of CFOs surveyed within the UAE are such price discount methods in comparison with 82% in Saudi Arabia,” survey reveals.
It additionally revealed that 83% of CFOs throughout the area are deferring investments by firstly reviewing their capital expenditure, adopted intently by enterprise operations and workforce. Such measures will unlock some reserves, giving CFOs some respiration area because the scenario continues to develop.
Regardless of their considerations, Anderson stated that CFOs within the Center East predict to get again to regular sooner relatively than later; pausing or delaying investments as a substitute of cancelling them altogether. The bulk anticipate their enterprise to return to enterprise as typical inside three months if Covid-19 have been to finish immediately.
“CFOs within the UAE are rather less optimistic, nevertheless, with a far greater proportion anticipating an extended restoration timeline of 6-12 months when in comparison with their regional and world counterparts,” he stated.
The instant impression has compelled CFOs to intently have a look at their working prices, particularly their workforce mounted prices.
“Getting access to real-time high quality info is without doubt one of the predominant challenges going through CFOs as they give the impression of being to make knowledgeable choices in unprecedented enterprise disruption. Having a view on quick time period liquidity will inform the CFO of what measures to take round price management and money conservation, and when to take them,” Mo Farzadi, Enterprise Restructuring Chief at PwC Center East, stated.