Only 26 per cent of chief financial officers (CFOs) in the Middle East reported a positive outlook for their company during the second quarter of 2015. This compares with some 47 per cent who had a positive outlook at the beginning of 2015.

The survey, conducted by US consultancy firm Deloitte, also showed that only 33 per cent of the CFOs believe it is a good time to take greater risk onto the balance sheet.

“For now, the favoured strategies are cost reduction and improving internal economics,” reports Deloitte. Cost reduction is favoured by 86 per cent of respondents as the strategy to protect an organisation’s financial position. This is followed by organic growth (73 per cent) and increased cash flow (66 per cent).

The report further noted that CFO perceptions are usually divided between the Gulf sates, which usually report higher levels of optimism, and the surrounding North African and Levant countries, where optimism levels are relatively lower.

The sustained low oil price, which began falling in mid-2014, has strongly dented the outlook of CFOs in Gulf states. Risk optimism in the UAE dropped to a net 46 per cent compared with 61 per cent during the second half of 2014.

Many of the surveyed CFOs believe that oil prices will be higher within a year. However, Deloitte conducted the survey when the prevailing oil price was $53 a barrel. Oil prices have since hit new lows, with the price over the weekend for WTI crude falling below $40 a barrel and Brent Crude $44 a barrel.