DBS and BSF Forge Alliance Between Asia and Saudi Arabia
A new Singapore–Riyadh partnership set to accelerate trade, investment, and remittance flows across the fast-growing Asia-GCC corridor.
(on the image, from left) Sriram Muthukrishnan, Group Head of Global Transaction Services Product Management, DBS; Simon Ong, Group Head of Financial Institutions and Government-Linked Corporates, DBS; Faisal Darwish, Head of Institutional Banking, BSF; Badr Alnowaisser, Head of Financial Institutions, BSF.
DBS, Southeast Asia’s largest bank, and Banque Saudi Fransi (BSF), one of Saudi Arabia’s leading financial institutions, have entered into a strategic partnership to deepen trade and payment connectivity between Asia and the Gulf Cooperation Council (GCC) region, according to a statement issued on Thursday.
The collaboration seeks to bolster trade settlements, financing, and currency clearing solutions to support businesses and consumers operating along the expanding Asia-GCC economic corridor.
Riding the Wave of Expanding Economic Ties
Economic ties between Asia and GCC nations have strengthened steadily in recent years. Trade between Southeast Asia and GCC countries reached around USD 130.7 billion in 2023, with an additional USD 50 billion in new trade flows expected by 2027.
Meanwhile, trade volumes between China and the GCC are forecast to double to USD 1.9 trillion by 2035. As the largest GCC economy, Saudi Arabia is set to play a pivotal role in this expanding network of commerce and investment.
Partnership Sealed at Global Finance Gathering
The partnership was formalised through a memorandum of understanding signed during Sibos, the global financial services conference organised by Swift, the world’s leading provider of secure financial messaging services.
The agreement underscores both institutions’ commitment to facilitating trade, capital flows, and financial innovation between their respective regions.
Unlocking Trade Opportunities for Businesses
DBS and BSF plan to leverage each other’s networks and strengths to deliver enhanced trade financing solutions to their clients. These include letters of credit, bankers’ guarantees, and trade loans.
The banks will also explore jointly financing client transactions to expand their combined lending capacity and better manage risk, providing companies on both sides of the corridor with more efficient access to liquidity.
Driving Seamless Cross-Border Payments
To meet rising demand for faster and more reliable international payments, both banks will look into utilising each other’s clearing networks. DBS offers access to seven of Asia’s largest currency-clearing corridors, while BSF provides Saudi Riyal clearing services – together enhancing regional transaction efficiency and reducing friction in cross-border transfers.
BSF will also consider adopting DBS GlobeSend, a same-day cross-border payment solution enabling access to over 1 billion accounts and digital wallets across more than 100 markets and 60 currencies. The system allows banks and financial institutions to execute cost-effective, transparent, and rapid international payments.
