International Finance

Saudi British Bank launches the Kingdom’s first shariah compliant supply chain finance solution

Saudi British Bank-IFM-image

The Saudi British Bank (SABB) has launched the Kingdom’s first shariah-compliant supply chain finance solution, media reports said. The Payables Finance concept is based on a buyer risk where the seller is bearing the cost of discounting.

The launch is in line with the Vision 2030 initiative to increase financing to the SME sector. It gives suppliers access to funds which are based on the credit standing of their buyers. This means sellers can access funds without using their own credit lines.

Majed Najm, Deputy Managing Director of Corporate and Institutional Banking at SABB told the media, “This comes within the bank’s continuous endeavors to contribute to achieving the kingdom’s vision and play our role as a major financial institution to stimulate economic and commercial growth.”

“In addition to our approach to innovating quality banking products in the market, SABB is well-positioned to leverage its local expertise and broad international presence through HSBC’s network to lead the market in order to support businesses in the Kingdom in line with Vision 2030.”

Earlier this month, SABB also announced the launch of its Instant Cross-Border Transfer Service for the US Corridor via the blockchain payment tech powered by Ripple.

“SABB has always been on the forefront in adopting cutting edge technology solutions, providing the best banking services and tailoring solutions that save time and efforts for our customers,” Najm added.

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