DBS and Riyadh-based Banque Saudi Fransi ( BSF ) have formed a strategic partnership to expand their trade settlement, financing, and regional currency clearing solutions.  The partnership aims to promote trade and capital flows across the growing Asia-Gulf Cooperation Council ( GCC ) economic corridor by providing greater support for businesses and end-consumers seeking to conduct trade, investments, and remittances.

Economic flows between Asia and GCC nations have been increasing over the years. In 2023, trade between Southeast Asia and GCC nations amounted to around US$130.7 billion. An additional US$50 billion in new trade flows between the two regions is expected to be generated by 2027. In addition, trade volumes between China and GCC nations are projected to double to US$1.9 trillion by 2035. Saudi Arabia is expected to play a pivotal role in the growth of the Asia-GCC corridor as the largest economy in the GCC.

Under a memorandum of agreement signed on the sidelines of the Sibos financial services conference in Frankfurt, the two organizations agreed to explore leveraging each other’s unique strengths and networks by providing trade financing solutions to each other’s clients. These solutions include letters of credit, bankers’ guarantees, and trade loans. In addition, both banks will explore jointly financing client transactions to better manage risk and expand their respective financing capacities.

To meet the growing demand for seamless cross-border payments, both banks will explore utilizing each other’s networks for local and regional currency clearing. In addition, BSF will explore using DBS GlobeSend to enable its customers to make same-day cross-border payments across DBS’ global payout network of over 1 billion accounts and digital wallets. DBS GlobeSend is a cross-border payment solution that enables banks and non-bank financial institutions to make cost-effective, fast, and transparent payments, covering 60 currencies across over 100 markets.