Mid-sized companies in the Gulf region need to look at alternative forms of financing, including more sophisticated instruments, to counter tighter bank lending, the head of an independent corporate financing firm said.

Arno Fuchs, chief executive of German-based FCF, said the Middle East market is about 20-30 years behind the more mature economies of North America and Western Europe in terms of the number and type of financing instruments available.

"There are fewer instruments here and the number of suppliers is lower; and it's a question of how many banks are on the sidelines because of the impact on their balance sheets," Fuchs said.

"For example, there is no receivables financing instrument in the Middle East but it is one of the best alternatives in short-term finance," he added.

Headquartered in Germany, FCF is trying to tap business among mid-cap companies - of between 25 million euro ($34 million) to 1 billion euro - in the region with an office based in Dubai.

The company is also looking to capitalise on sourcing investment opportunities for German firms in the region and vice versa. – Reuters