(MENAFN- The Peninsula) Companies in Qatar are investing in more comprehensive expense management practices as part of efficiency drives resulting from the global financial crisis, and nearly 70 percent of respondents expect to maintain or increase corporate expenditure in coming year, according to the findings of a survey released yesterday by American Express® Middle East.
The Corporate Spending Survey was conducted by YouGov, which surveyed corporate expense managers at large companies in Qatar. The survey found that, following the global economic slowdown, 53 percent of study participants report their companies are now more financially conservative, but rather than spending less, they are spending smarter, placing greater importance on cost management than cost reduction.
Asked to what extent their company's interest in improving different business processes has changed as a result of the financial crisis, three quarters (75 percent) report that planning, budgeting and forecasting have become a higher priority. Other processes that have taken on greater importance for businesses in Qatar include cash management (66 percent), internal cost management reporting (65 percent) and business analysis (65 percent).
The adoption of smarter business practices is evident in the actions of business in Qatar over the last six months. A third of participants (34 percent) say they have renegotiated contracts with suppliers, 28 percent have reduced the number of expense activities which can be billed back to the company, a quarter (25 percent) have introduced new corporate expense policies, and 16 percent have utilised technology such as video conferencing.
Cost reduction has also been important, with a third (34 percent) of respondents switching to less expensive suppliers and a quarter (25 percent) reducing executive travel, while 16 percent have lowered per diem allowances.
The trend to spend more smartly is evident in business appetite to introduce more transparent and efficient expense management processes which give them the transparency over spending needed to drive savings and control. About 47 percent of participants say they now have a clear, company-wide corporate expense management policy in place, while another 28 percent have an intention to develop one.
Additionally, among companies that have become more conservative since the financial crisis, 53 percent say they are implementing new expense management tools to give them greater visibility over outgoings, 44 percent have introduced new tools to help with liquidity, and 35 percent are introducing simpler expense management processes.
"Although companies in Qatar have enjoyed a highly hospitable business climate in recent years, it appears that the global economic downturn, which started in 2008, has still encouraged them to take steps to master control of their outgoings and proceed in developing Qatar," said Mazin Khoury, CEO of American Express Middle East.
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