INDUSTRY OUTLOOK at 4 %, Saudi Arabia ’ s rate is a healthy 3.1 % and Oman ’ s is as low as 2.4 %.
But this does not mean that Gulf organisations can rest easy . For example , the UAE ’ s inflation rate may be lower than those in Europe and the Americas , but it is the nation ’ s highest since 2016 . This presents a challenge for regional professionals in financial planning and analysis ( FP & A ), who have already had to rapidly adapt to a global pandemic , energy crises , climate change , cyberattacks and the rise of the hybrid workplace .
So , as inflation starts to be reflected in the region ’ s rising costs of labour and raw materials , all industries must absorb shrinking margins . With the new year on the horizon , this will be the time for businesses to reflect on the year gone by . In looking forward to 2023 , they might find it challenging to predict what prevailing economic conditions will be – but this can
As inflation starts to be reflected in the region ’ s rising costs of labour and raw materials , all industries must absorb shrinking margins .
be a frustrating if not futile endeavour . Instead , it would be better to assume that uncertainty is the only certainty and with this business , stakeholders must move beyond the management of inflation . They must plan for it .
Not business as usual
In recent years , FP & A professionals have had to adapt to seemingly endless volatility which has driven a need for an increase in the number and cadence of the forecast . Yearly plans have little place in a world where tectonic shifts take place overnight , warranting a complete overhaul of outlooks and strategies . FP & A professionals have had to factor in a greater number of external data points , coordinate more closely with other business stakeholders and rapidly model multiple different scenarios . As the risk of economic uncertainty rises , FP & A professionals can adapt to inflation in three main ways to help their organisation remain resilient . www . intelligentfin . tech