According to internal data from Tribal, a company that provides comprehensive digital financial solutions, international transfers of companies in MENA for the payment of suppliers, purchase of equipment and raw materials, and corporate services increased 10% from the first quarter to the second quarter of 2022.
The expansion of business across borders is one of the most attractive opportunities for expansion since it opens up commercial prospects in new markets.
The UAE’s main export markets in 2020 were India, China, Saudi Arabia, Japan and Iraq, according to the OEC. In 2020, Saudi Arabia exported its products primarily to China, India, Japan, South Korea, and the UAE, while the US, Saudi Arabia, UAE, Turkey, and Italy were Egypt’s top export markets in 2020. Therefore national companies need economically sustainable alternatives to make safe and effective international payments.
The increasing need to seamlessly access export markets has become even more relevant considering the growth in e-commerce during the COVID-19 crisis, the predicted strong growth of e-commerce – with e-commerce sales predicted to rise to $50 billion in 2022 as per CNNB Solutions’ 2022 MENA e-Commerce Report, and the strong commercial links between countries in the MENA region.
According to the World Bank, post-COVID-19 economic growth will require an increase in trade and commerce within and between MENA countries. It will become increasingly critical for companies to be able to reach customers throughout the region and internationally.
However, businesses in MENA still have trouble getting access to banking and financial services that would allow them to engage in international trade, with these businesses being at different stages of their development.
Amira Fadel, Tribal Regional Manager for MENA said: “With business operations returning to normal, we anticipate that developments in the market will lead to further revenue growth in 2022.”
“International trade provides new growth opportunities for companies, so we must find ways to improve their participation in the global economy, facilitate their access, and provide them with the necessary support. A flexible, scalable, and easy-to-use series of payment solutions for companies must be provided that meet their needs for credit options, scalability, and flexibility.”
Emerging fintech companies have transformed international transfers for businesses. With Tribal Pay, for example, companies with an active line of credit can transfer funds without incurring fees to pay different international suppliers.
Fadel added: “Additionally, Tribal’s digital expense management platform can track expenses in real-time, improving the overall pyment process efficiency. Today, companies that view global trade as the next step can make international transfers more effective, secure, and within reach with innovative technology.”
