Almost half, or 48 per cent, of all GCC chief financial officers expect a return to pre-crisis or near-normal levels of operations by the second quarter of next year or later, according to a survey by Deloitte.
Sentiment varied significantly across industries, with finance executives in manufacturing, technology, media and telecommunications being most optimistic, according to the survey which polled 100 chief financial officers from the UAE, Saudi Arabia and Qatar in July.
“Regional CFOs have been very busy in recent months assisting their businesses to recover from significant reductions in revenue and cash flow,” said Declan Hayes, partner and CFO programme leader at Deloitte Middle East.
Regional CFOs have been very busy in recent months assisting their businesses to recover from significant reductions in revenue and cash flow
The stay-at-home conditions imposed to contain the spread of the Covid-19 pandemic, international travel restrictions and the enforced closure of businesses resulted in a decline in economic activity globally.
The biggest step taken by CFOs in the region to mitigate the impact of Covid-19 was cost-cutting initiatives by companies, with 30 per cent adopting this strategy. Other key actions taken included revenue growth initiatives and working capital optimisation. Almost four out of 10 CFOs surveyed did not seek to make any salary reductions, the Deloitte report found.
In response to the pandemic, 41 per cent of CFOs in the Middle East are focused on ensuring financial viability, 36 per cent are adapting their business to maximise performance, while 23 per cent are focusing their time on evolving business models and strategising for the post-Covid era, the survey found.
“All CFOs in the travel, hospitality and leisure and 62.5 per cent of CFOs in consumer business industries were most focused on responding to the crisis, with those operating in construction, manufacturing, technology, media and telecommunications concentrated their efforts on recovery,” the Deloitte report added.
A majority of CFOs also said improving cash flow, cost management and digitalisation are the highest priorities for the next 12 months. Despite the growth in remote work and an increased need to access data securely from third-party locations, cyber security remained the lowest-ranking priority for CFOs in 2020, the Deloitte report noted.
Most CFOs surveyed by Deloitte also said they expect remote working in their companies to remain at the current levels or increase, with 43 per cent planning on investing and expanding remote working capabilities across the next 12 months. Meanwhile, 45 per cent of CFOs expect more of their finance team to be working remotely.
“Though mostly cautious as to when the impact of Covid-19 begins to recede, CFOs are adapting their businesses through a combination of changes to remote working while actively seeking strategic opportunities to reposition, including the potential for mergers and acquisitions,” Mr Hayes said.
The Deloitte report added that 34 per cent of CFOs are actively seeking M&A opportunities and 42 per cent are willing to execute any M&A activity should the right opportunity arise.
A Covid-19 CFO Pulse survey conducted by PwC in June found nearly 72 per cent of finance executives in the Middle East believe it will take at least three months or more for the economy to recover from the pandemic.
Drishyam 2
Directed by: Jeethu Joseph
Starring: Mohanlal, Meena, Ansiba, Murali Gopy
Rating: 4 stars
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The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
The five pillars of Islam
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
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Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Anghami
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Sector: Entertainment
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Stage: Series C
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Jetour T1 specs
Engine: 2-litre turbocharged
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Torque: 390Nm
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