The partnership will boost GCC trade, finance and currency-clearing collaboration across the region
[SINGAPORE] DBS Group, the largest bank in South-east Asia, said on Thursday (Oct 16) that it has partnered with Riyadh-based Banque Saudi Fransi (BSF) to strengthen trade finance and payment flows between Asia and Saudi Arabia.
The partnership, aimed at capitalising on the economic ties within the Gulf Cooperation Council (GCC) region, will involve collaboration on trade settlement, financing and regional currency-clearing solutions, DBS said in a statement.
The agreement comes as economic flows between the GCC and Asian nations accelerate. Trade between South-east Asia and the GCC reached about US$130.7 billion in 2023 and is expected to grow by another US$50 billion by 2027, according to DBS.
The tie-up was formalised at the sidelines of Sibos financial services conference in Frankfurt, and will also facilitate joint financing of client transactions, the statement said, adding that the trade volumes between China and GCC countries are projected to double to US$1.9 trillion by 2035.
“Asia and the Middle East are growing increasingly interconnected as businesses, investors and talent pursue opportunities in these dynamic markets,” Sriram Muthukrishnan, DBS’s group head of global transaction services product management, said in the statement.
Saudi Arabia, the GCC’s largest economy, is expected to play a key role in driving growth across the corridor, DBS said.
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Under the agreement, BSF will also consider using DBS’s GlobeSend platform to enable same-day cross-border payments across the lender’s global payout network, which spans over 100 markets. REUTERS
