Multibank Relationship Management in Middle East and Africa

3 Multibank Relationship Management in Middle East and Africa Foreword With presence in over 180 countries, Citi continues to be at the forefront of understanding the banking behaviours of Multinational Corporations (MNCs) to ever-evolving business environments. Multi-banking, the practice of maintaining relationships with multiple banks, is a critical strategy point for corporate treasuries with operations in Middle East and Africa (MEA). Effectively managing banking relationships can prove to be a key differentiator between best-in-class companies and others. Product suite, risk management and international coverage are pivotal when choosing the right bank for an MNC, while country risk, capital reserve requirements and other regulations can limit the level of support a bank can provide. Finding the equilibrium point between these needs and capabilities will require corporates to be multi-banked, complementing their rosters of global banks with close relationships locally as a source of credit, niche product partner and ‘high touch’ coverage. In this paper we will explore howMNCs manage their banking relationships and highlight the reasons why they may choose to be multi-banked in Middle East and Africa, 1 how these reasons differ from the traditional reasons in the west and to identify markets where multi-banking is more prevalent. Finally, the paper provides an outlook and recommendations for corporate treasurers navigating in the MEA region. We hope you find this paper insightful and beneficial to you and your organisation. Pavel Knecht MEA Corporate Sales Head for Multinationals, Treasury and Trade Solutions, Citi, Middle East and Africa 1 Citi Global Presence