Mideast firms could unlock $54.7B in trapped cash: PwC

Publicly listed companies across the Middle East have an estimated $54.7 billion trapped on their balance sheets, presenting a major opportunity to unlock liquidity and strengthen financial resilience, a report showed on Monday.

- Somshankar Bandyopadhyay [e-mail]

Luxury towers dominate the skyline in the Dubai Marina district. The UAE's non-oil revenue surged 16.8 per cent in 2024.

(FILE PHOTO)

According to PwC’s 2025 Middle East Working Capital Study, in 2024, companies in the region improved net working capital (NWC) days by six days — a 5.6 per cent gain — driven by better receivables collection and inventory management. However, only 9.4 per cent of firms sustained these improvements for three consecutive years, highlighting challenges in embedding long-term efficiency.

“In a year marked by heightened geopolitical uncertainty and supply chain disruption, effective working capital management remains a strategic priority in the Middle East,” said Mo Farzadi, Business Restructuring Services Leader at PwC Middle East. “Companies that take a disciplined approach to cash conversion can unlock liquidity, build resilience, and respond more confidently to market pressures. Sustainable improvements in working capital continue to be a powerful enabler of growth and long-term value.”