GCC corporates build trade resilience as banks scale up liquidity solutions
As corporates diversify suppliers and trade routes, treasurers are turning to receivables finance, supply chain finance and real-time visibility tools to protect liquidity and strengthen banking relationships.
In conversation with Malinga Fernando, Senior Vice President, Head of Trade Products at Mashreq
1) How are corporate clients reassessing trade and supply chain risk and where are the biggest pressure points today?
Today, corporate clients are looking at supply chain risk through a different lens. While efficiency and cost remain important, resilience has become just as critical. Companies are reassessing concentration risk across their supply chains, diversifying suppliers and logistics routes, and investing in better visibility so they can respond more quickly to disruption. The priorities vary by sector, but the challenges are broadly the same. Organisations are dealing with supplier concentration, transport disruptions, longer lead times, geopolitical uncertainty and regulatory change, while also balancing the higher costs that come with building more resilient supply chains.
2) How is treasury becoming more central to operational resilience?
Treasury is becoming much more central to operational resilience because it gives businesses the flexibility to respond when trade flows, supply chains or customer markets shift. We’ve seen companies enter new markets or redirect sales as trade patterns evolve, and treasury is what makes those transitions possible. It enables businesses to establish new banking relationships, manage liquidity, support payments across new corridors and mitigate foreign exchange risks. As a result, treasury has evolved from a back-office function into a strategic enabler of business continuity and growth, supported by strong banking partnerships that help organisations respond quickly to change.
3) Are corporates building more structured contingency plans for trade routes, supplier networks and liquidity access?
Absolutely, compared to a few years ago, corporates are taking a much more proactive approach to contingency planning. Many are diversifying supplier networks, developing alternative trade routes, and establishing regional manufacturing or warehousing hubs to reduce the impact of disruptions. However, greater resilience comes at a cost. Holding more inventory, onboarding new suppliers and building operational redundancy all require additional working capital, prompting many organisations to rethink how they fund these investments. We’ve also seen a shift in how treasurers approach funding. Rather than relying solely on traditional balance-sheet financing and revolving credit facilities, many are increasingly turning to working capital solutions such as receivables finance, supply chain finance and inventory financing to improve cash flow and support long-term resilience.
4) How can transaction banking solutions help corporate clients maintain continuity, visibility and enable faster decision-making?
Transaction banking today is about much more than financing trade. It gives businesses the visibility, flexibility and digital capabilities they need to respond quickly when conditions change. We’ve focused on this at Mashreq through NEO CORP, which brings together cash management, trade finance and supply chain finance in a single digital platform, giving clients greater visibility and faster execution. During periods of disruption, digital channels also ensured businesses could continue banking remotely when physical processes were disrupted. Ultimately, real-time visibility into cash and liquidity enables treasury teams to make faster, better-informed decisions and strengthen operational resilience.
