Tribal Credit Reveals Spending Priorities of MENA Businesses at Different Stages of Growth

Tribal Credit has highlighted the top spending categories for local businesses based on spending data for small, medium and new businesses tracked over the past year.

As businesses expand across the region, their spending becomes increasingly important to economic growth.

Despite the easing of COVID-19 restrictions, 9 out of 10 purchases have been made online in recent months, reflecting the shift to e-commerce and online shopping.

As data from Tribal shows, online advertising was the category in which companies at various stages of development spent the most during this period, further demonstrating the long-term growth of online sales.

For companies and advertising agencies, paying for digital campaigns by card simplifies the payment process, control of expenses and relationship with platforms.

The second largest expense for corporate cards was for freight services and logistics, primarily for imports and exports. The growth of e-commerce provides businesses at various stages of development with a great opportunity to expand into other markets, which has become increasingly important with the growth of e-commerce.

Finally, businesses spent the third highest amount on IT technology and infrastructure, such as hardware, software and programming services. Digital infrastructure spending shows that businesses continue to adapt their operations to the digital economy.

In the MENA region, tribal observed that travel spending, including travel agencies, flights and hotels, showed the greatest growth between the second half of 2021 and the first half of 2022. Companies in the region at various stages of growth ranked travel spending among the top ten expenses in the last quarter. A sharp increase in spending in this sector indicates that companies are expanding their markets and moving to improve their operations.

Using services like Tribal can make digital spend management more efficient by simplifying tracking and management.

Amira Fadel, Regional Director of Tribal – MENA, said: “It is important to consider that companies continue to adapt to new times with the revolution in disruptive technologies, and many are accelerating their digitization processes. In this sense, it is valuable to see that companies are using their corporate capital and credit resources to make payments, especially through e-commerce, directly linked to driving business growth.

Egyptian SMEs represent 90% of active businesses and 80% of GDP, according to the Organization for Economic Co-operation and Development. In the UAE, SMEs represent 86% of the private sector workforce and 60% of GDP. Furthermore, data from the Saudi government indicates that the contribution of SMEs to GDP has increased to 28.7% since March 2021.

Fadel added: “We know that MSMEs are the backbone of the global economy and most jobs in the world come from them. Therefore, continuing to bet on the expansion of its activities is essential to continue contributing to economic and social development.



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