DBS, Southeast Asia’s largest bank, and Banque Saudi Fransi (BSF), a leading financial institution in Saudi Arabia, have announced a strategic partnership to enhance trade settlement, financing, and regional currency clearing solutions. Formalised at the Sibos conference, this collaboration seeks to facilitate trade, investments, and remittances across the burgeoning Asia-Gulf Cooperation Council (GCC) economic corridor.
Trade between Southeast Asia and GCC nations reached approximately $130.7b in 2023, with an additional $50b expected by 2027. The partnership aims to leverage the strengths and networks of both banks to offer trade financing solutions, including letters of credit and trade loans, to their clients. Additionally, DBS and BSF will explore joint financing of client transactions to manage risk and expand financing capacities.
To address the increasing demand for seamless cross-border payments, the banks plan to utilise each other’s clearing networks. This includes DBS’ access to seven major Asian currency clearing corridors and BSF’s Saudi Riyal clearing services. BSF will also consider using DBS GlobeSend, a cross-border payment solution, to enable same-day payments across DBS’ global network.
Sriram Muthukrishnan of DBS highlighted the growing interconnection between Asia and the Middle East, stating that the partnership aims to facilitate the flow of goods, services, and capital. Faisal Darwish of BSF emphasised the collaboration’s potential to strengthen financial connectivity and open new opportunities for businesses and consumers. This partnership underscores Saudi Arabia’s pivotal role in the Asia-GCC corridor’s growth.
