Saudi British Bank (SABB) said it has signed an agreement with The Ministry of Finance to fund its supply chain, in collaboration with National Debt Management Center.
This pact brings the kingdom’s three leading banks together to speed up transactions between buyers and suppliers to boost economic growth, said the Saudi bank in its statement.
Under this new agreement, payment orders are funded by financial institutions to pay the dues of suppliers from the private sector immediately. The faster process improves efficiency of liquidity management for the private sector.
It includes implementing a supply chain financing programme, as a financial solution to the ministry’s cash and liquidity management, stated David Dew, the managing director at SABB, after signing the deal with Fahad Al Saif, the chief executive of the National Debt Management Center, in the presence of Abdulaziz bin Saleh Al-Furaih, the chairman of the steering committee at the Ministry of Finance.
Following the signing of the agreement, Dew expressed delight at having the opportunity to play a leading role in developing the Saudi financial sector.
"As a stronger, merged bank, we promise to work harder than ever to create more growth opportunities for the kingdom," he said.
"Now more than ever, it’s important the Saudi government and banks are able to pull together to fast track the kingdom’s financial development. Everybody wins when we collaborate to make doing business in the country easier - and the new Supply Chain Financing Agreement is a great example of that," he added.
According to him, SABB actively supports many strategic partnerships with governmental institutions to help achieve Vision 2030 initiatives and objectives.
As part of the Vision 2030 Financial Sector Development Programme, the Saudi bank was recently granted approval by the Securities Clearing Center Company (Muqassa) to act as a general clearing member to conduct clearing activities in Saudi Stock Exchange (Tadawul), he added.-TradeArabia News Service