Across the Middle East and North Africa, the way trade is financed is gradually changing, as traditional instruments, like letters of credit and guarantees, are joined more and more by open account terms. 

These changes are affecting how trade transactions are structured across the region. These have knock-on effects as to how trade itself is managed since the financing structure behind a deal can influence things like payment timing and the balance of risk between buyers and suppliers.

To help unpack these developments and discuss how the market is evolving across Qatar, Saudi Arabia, and the wider MENA region, Trade Treasury Payments (TTP) spoke with Kamel Moris, Executive Vice President, Global Transaction Banking at QNB, and Thiru Mutusamy, Vice President, Global Trade Services Product at QNB.

The rise of open account trade in MENA

TTP: Open account trade has been gaining ground globally. What is driving its growth specifically across Qatar, Saudi Arabia, and the wider MENA markets you serve?

Kamel Moris: If you look at how trade has evolved across the region, open account trade has really gained momentum over the last decade.

Traditionally, trade in MENA was very document‑heavy and reliant on trade instruments, such as letters of credit, guarantees, and documentary collections. Those tools are still absolutely relevant, but as supply chains have matured and trading relationships have become more established, we’re naturally seeing more comfort with open account mechanisms.

A big part of this shift is because of the need to optimise working capital. Corporates today are far more focused on cash‑flow efficiency, extending payables where they can, and reducing receivables. Open account structures allow a balance between improving predictability without putting strain on supplier and buyer relationships. 

Another important factor is resilience. What we’ve seen, especially over the last few years, is a realisation that supporting suppliers, particularly smaller suppliers, is critical to keeping supply chains stable. That’s become a strategic consideration, not just a financing one.

And then there’s digitalisation. Clients expect speed, transparency, and systems that connect easily with how they already operate. That expectation is pushing trade finance toward more open, platform‑based models.

In markets like Qatar and Saudi Arabia, where you have strong growth, diversification, and large anchor buyers driving trade activity, open account financing is increasingly becoming part of the normal flow of business.

Balancing open account trade with traditional instruments

TTP: From your perspective at QNB Group, where do traditional trade instruments still dominate, and where are you seeing a shift towards open account models?

Thiru Mutusamy: From our perspective, traditional trade instruments still play a very important role, particularly where risk needs to be tightly managed.

In higher‑risk markets, new trading relationships, or sectors like commodities, where transaction values are large, and counterparties may not have a long track record together, instruments such as letters of credit and guarantees continue to be essential. They provide certainty, structure, and comfort around performance and payment.

Where we’re seeing a clear shift is within more established supply chains, especially domestic and regional trade flows, and in sectors like retail, FMCG, construction, and manufacturing. In those cases, buyers and suppliers often know each other well, transactions are repeat‑driven, and the focus naturally moves toward efficiency and liquidity optimisation.

In those environments, open account models supported by supply chain finance make a lot of sense. They allow buyers to manage working capital more effectively, while still ensuring suppliers have access to funding through a bank‑led structure.

So rather than an either‑or situation, what we’re really seeing is a more blended ecosystem. Clients want the flexibility to use traditional instruments where risk mitigation is key, and open account solutions where relationships and trade flows are already well established.

Building a digital ecosystem for supply chain finance

TTP: What strategic gap are you trying to address by implementing solutions powered by Finverity and its Finverity OS?

Thiru Mutusamy: From QNB’s perspective, the gap isn’t around trade finance capability; that’s an area where we already have strong expertise, a solid balance sheet, and deep client relationships.

The gap we were addressing was really about scale and digital execution, particularly as supply chain finance evolves beyond a single product into a broader open‑account ecosystem.

Today, clients are looking for a range of solutions, receivables and payables finance, distributor and dealer finance, pre‑shipment and inventory finance, and even deeper‑tier structures, all delivered in a consistent, digital way. Managing that complexity across buyers, suppliers, distributors, and multiple markets is difficult without the right technology foundation.

What we needed was a platform that could support this full suite of open‑account solutions, simplify onboarding and workflows, provide transparency across the supply chain, and integrate effectively with our existing systems, while still operating fully under the QNB brand and within our credit, risk, and governance frameworks.

Finverity and Finverity OS address that gap by giving us a scalable technology layer that supports ecosystem‑based supply chain finance, allowing us to serve clients more holistically without compromising control or standards.

TTP: What tangible outcomes are clients seeing as a result, in terms of liquidity access, supplier relationships, or balance sheet efficiency?

Thiru Mutusamy: From a liquidity perspective, the outcome we expect is much earlier, more predictable access to funding across the ecosystem. Whether that’s suppliers accessing receivables finance, distributors and dealers being funded to support downstream sales, or financing provided against inventory or pre‑shipment activity, the objective is to align liquidity with the underlying trade flows.

For buyers, these structures, including payables finance, dynamic discounting, and deeper‑tier financing, allow working capital to be managed more efficiently, without transferring stress onto suppliers. In many cases, this actually strengthens supplier and distributor relationships by improving cash‑flow certainty and financial resilience.

We also expect meaningful balance‑sheet and visibility benefits. Treasury teams gain better insight into how liquidity is deployed across suppliers, distributors, and inventory, while being able to optimise payment terms and cash‑flow metrics in a structured way.

Taken together, the outcome is a more resilient and better‑funded supply chain, one where financing supports the entire ecosystem.

How open account finance is reshaping corporate behaviour

TTP: Have you observed any change in behaviour from corporates or suppliers once these programmes are in place?

Kamel Moris: What we expect to see is a shift from reactive to much more structured behaviour across the supply chain.

On the corporate side, working capital management typically becomes more embedded in day‑to‑day operations. Treasury, finance, and procurement teams tend to work more closely together because payment terms, supplier participation, and liquidity are all linked. That leads to more deliberate and strategic decisions around the supply chain rather than ad‑hoc funding actions.

For suppliers, particularly SMEs, access to a structured, bank‑led programme is expected to bring greater predictability. Instead of reacting to cash‑flow pressure, suppliers are able to plan more effectively, manage invoices more proactively, and engage more digitally with buyers.

We also expect an improvement in the overall quality of supplier relationships. When funding is transparent and optional rather than forced, trust tends to increase, and friction reduces.

Over time, these programmes usually become part of the operating model rather than a one‑off financing solution, which is when they deliver the greatest value to both buyers and suppliers.

TTP: Looking ahead, how do you see open account financing fitting, long term, into the ecosystem alongside traditional instruments?

Thiru Mutusamy: Long term, we see open account financing and traditional trade instruments working very much side by side as part of a broader, integrated trade ecosystem.

Traditional instruments such as letters of credit, guarantees, and structured trade products will continue to play a critical role in risk mitigation. They are essential where counterparties are new, risks are higher, or where contractual and regulatory certainty is required.

At the same time, open account financing will increasingly support the day‑to‑day flow of trade, particularly in established supply chains. As relationships mature and trade becomes more repeat‑driven, the focus naturally shifts toward efficiency, liquidity optimisation, and scale, which is where open account solutions are most effective.

Over time, the distinction between the two will become less rigid. Clients will expect the ability to move seamlessly between traditional instruments and open account structures depending on the transaction, the market, and the risk profile.

Our role as QNB is to sit at the centre of that ecosystem, providing the right mix of risk mitigation, liquidity, and digital capability, so clients can trade with confidence while managing working capital more effectively.