UAE Leads the World in Planned Digital Supply Chain Finance Investment, Standard Chartered Report Finds
The UAE also ranks third globally for planned investment in real-time cash visibility and second for automated payments.
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Standard Chartered has announced the findings of its latest Future of Trade report, titled ‘Navigating an Age of Structural Uncertainty’, which ranks the United Arab Emirates first globally among 27 surveyed markets for planned investment in digital supply chain finance platforms.
The ranking comes as UAE businesses increase their focus on supplier resilience, real-time visibility and closer integration between treasury and trade.
The study, which surveyed 2,100 senior corporate decision-makers across 27 markets, found that 69% of UAE businesses plan to invest in digital supply chain finance platforms over the next three to five years, the highest level across all surveyed markets.
The UAE also ranks third globally for planned investment in real-time cash visibility, identified by 76% of respondents, and second for automated payments, at 53%.
Syed Khurrum Zaeem, Managing Director, Head of Trade and Transactional Banking for the Middle East, Pakistan and Africa, Standard Chartered, said, “The UAE’s leading position in planned digital supply chain finance investment reflects the continued evolution of its trade ecosystem. Businesses are placing greater emphasis on strengthening supplier networks, improving visibility and connecting treasury more closely with trade. As businesses operate across increasingly complex international markets, these capabilities will be increasingly important to strengthening resilience and supporting growth.”
That shift is also evident in how UAE businesses are approaching supplier resilience. Priority given to supplier-focused strategies has risen by 26 percentage points compared with the previous year, against a global increase of 4.3 percentage points. Inventory management has also risen by seven percentage points in the UAE, compared with 2.9 percentage points globally.
UAE businesses are also reporting clear benefits from digitalization. 90% say digital tools help them respond faster to supply-chain disruption, compared with 83% globally. A further 85% say digital tools improve decision-making through better visibility and forecasting across supply-chain and financial flows, while 87% report clear, measurable benefits from at least one digital capability.
Building on these gains, closer integration between treasury and supply-chain functions represents the next stage of the transition. 44% of UAE businesses plan to adjust their treasury management strategies over the next three to five years, while 40% plan to increase their use of digital tools and systems. 42% report partial integration between treasury and supply-chain functions and 13% full integration, while the absence of end-to-end visibility across supply-chain and financial flows is the most frequently identified gap, cited by 46% of respondents.
Greater integration is also expected to translate into tangible cost efficiencies. The UAE ranks first globally among surveyed markets for the share of businesses expecting digitalization to reduce the cost of coordinating shipments and logistics by at least 10%. It also ranks among the top three for anticipated cost reductions across compliance and regulatory requirements, payments and settlements, and engagement with overseas counterparties.
The UAE findings reflect a broader global shift towards more digitally enabled trade. The Future of Trade report includes an illustrative Digital Acceleration scenario, which estimates that faster trade digitalization could lift global trade by 6.9%, equivalent to US$2.8 trillion, by 2031 compared with Oxford Economics’ baseline forecast.
Standard Chartered has announced the findings of its latest Future of Trade report, titled ‘Navigating an Age of Structural Uncertainty’, which ranks the United Arab Emirates first globally among 27 surveyed markets for planned investment in digital supply chain finance platforms.
The ranking comes as UAE businesses increase their focus on supplier resilience, real-time visibility and closer integration between treasury and trade.
The study, which surveyed 2,100 senior corporate decision-makers across 27 markets, found that 69% of UAE businesses plan to invest in digital supply chain finance platforms over the next three to five years, the highest level across all surveyed markets.
The UAE also ranks third globally for planned investment in real-time cash visibility, identified by 76% of respondents, and second for automated payments, at 53%.
Syed Khurrum Zaeem, Managing Director, Head of Trade and Transactional Banking for the Middle East, Pakistan and Africa, Standard Chartered, said, “The UAE’s leading position in planned digital supply chain finance investment reflects the continued evolution of its trade ecosystem. Businesses are placing greater emphasis on strengthening supplier networks, improving visibility and connecting treasury more closely with trade. As businesses operate across increasingly complex international markets, these capabilities will be increasingly important to strengthening resilience and supporting growth.”
That shift is also evident in how UAE businesses are approaching supplier resilience. Priority given to supplier-focused strategies has risen by 26 percentage points compared with the previous year, against a global increase of 4.3 percentage points. Inventory management has also risen by seven percentage points in the UAE, compared with 2.9 percentage points globally.
UAE businesses are also reporting clear benefits from digitalization. 90% say digital tools help them respond faster to supply-chain disruption, compared with 83% globally. A further 85% say digital tools improve decision-making through better visibility and forecasting across supply-chain and financial flows, while 87% report clear, measurable benefits from at least one digital capability.
Building on these gains, closer integration between treasury and supply-chain functions represents the next stage of the transition. 44% of UAE businesses plan to adjust their treasury management strategies over the next three to five years, while 40% plan to increase their use of digital tools and systems. 42% report partial integration between treasury and supply-chain functions and 13% full integration, while the absence of end-to-end visibility across supply-chain and financial flows is the most frequently identified gap, cited by 46% of respondents.
Greater integration is also expected to translate into tangible cost efficiencies. The UAE ranks first globally among surveyed markets for the share of businesses expecting digitalization to reduce the cost of coordinating shipments and logistics by at least 10%. It also ranks among the top three for anticipated cost reductions across compliance and regulatory requirements, payments and settlements, and engagement with overseas counterparties.
The UAE findings reflect a broader global shift towards more digitally enabled trade. The Future of Trade report includes an illustrative Digital Acceleration scenario, which estimates that faster trade digitalization could lift global trade by 6.9%, equivalent to US$2.8 trillion, by 2031 compared with Oxford Economics’ baseline forecast.
