Transforming CFO Tools: The Key to MENA SMEs' Future Success

As the Middle East and North Africa (MENA) region witnesses accelerating digital transformation, the role of Chief Financial Officers (CFOs) in Small and Medium Enterprises (SMEs) becomes increasingly critical. A recent report by Adnan Murudi, Associate, and Simon Sharp, Partner at Global Ventures, highlights that CFOs are pivotal in connecting liquidity, performance, and strategic planning to business execution. However, many finance teams in the region still rely heavily on outdated methods, including spreadsheets and manual workflows, which hinder efficiency and scalability.

SMEs represent a significant portion of the MENA economy, accounting for up to 90% of private sector businesses and employing over 50% of the formal workforce in key markets like Saudi Arabia and Egypt. Yet, these enterprises face substantial challenges in accessing financial services, receiving only 8% of total lending across the region, with figures plummeting to as low as 2% in some Gulf Cooperation Council (GCC) countries (World Bank, 2022).

A staggering 80% of SMEs in MENA still rely on manual or semi-manual processes, which not only limit accuracy but also impede operational efficiency. This scenario is beginning to change as fintech companies introduce innovative tools tailored to the unique challenges faced by CFOs in the region. The report identifies five primary challenges that drive the need for modern fintech solutions: 1) Highly manual workflows that consume excessive time on error-prone tasks; 2) Overly complicated tech stacks that lack integration; 3) Poor collaboration across budgeting and forecasting processes; 4) Data fragmentation that complicates performance tracking; and 5) Limited planning and forecasting tools, with Excel remaining the dominant software for Financial Planning and Analysis (FP&A).

The emergence of fintech solutions specifically designed for CFOs is transforming the financial landscape in MENA. These tools are being developed with a keen understanding of local regulations and operational complexities, moving beyond simple point solutions to create comprehensive platforms that encompass payments, accounting, and reporting functionalities. For instance, payment automation solutions streamline fund disbursements, while expense management tools provide real-time visibility into operational spending. Furthermore, cash flow and equity management platforms are opening access to alternative funding streams, thus enhancing financial flexibility for SMEs.

Looking ahead, the future of CFO technology in MENA will be shaped by four key trends: localized compliance, the evolution of end-to-end platforms, the development of sector-specific solutions, and enhanced financial planning tools. Localized compliance will become increasingly important as fintech tools adapt to regional requirements, offering features such as Arabic-first interfaces and tailored tax handling. Additionally, integrated platforms that combine multiple workflows are expected to gain traction, providing CFOs with a comprehensive view of their operations.

The demand for sector-specific solutions is anticipated to rise as businesses seek tools that cater to their unique industry challenges. Finally, the shift towards dynamic, scenario-based financial planning tools will empower CFOs to make more informed decisions in real-time, moving away from static dashboards.

As MENA’s digital transformation accelerates, CFOs are poised to become key drivers of operational efficiency and strategic insight. The adoption of tailored fintech tools not only enhances the scalability of SME finance but also lays the groundwork for future business growth in the region. With a supportive financial ecosystem, MENA’s SMEs can unlock their full potential, contributing significantly to the region’s economic development.