Aramco, a global leader in integrated energy and chemicals companies based in Saudi Arabia, and Taulia, a SAP company and leading FinTech provider of working capital management solutions – supported by the Saudi Industrial Development Fund (SIDF) as one of the key finance providers of the domestic industrial sector – have signed agreements to establish a supply chain financing solution.
These entities have joined forces to establish one of the world’s largest supply chain financing programmes, which aims to provide an alternative and affordable source of financing for Aramco’s suppliers.
Announced during the FII 8th Edition in Riyadh, the new FinTech solution is expected to enhance suppliers’ liquidity and cash forecasting accuracy, while reinforcing Aramco’s supply chain resilience.
Ziad T. Al-Murshed, Aramco CFO and Executive Vice President of Finance, said: “At Aramco, we recognize the crucial role our suppliers play in contributing to our business continuity, which in turn enables the delivery of energy and petrochemical products reliably and competitively across the globe.”
“Together with our partners, we are introducing this FinTech solution for our suppliers, offering them an access to a unique and competitive financing opportunity. This platform also provides an investment opportunity for banks to participate as finance providers, enhancing the solution’s scale and viability. We extend our gratitude to the Saudi Central Bank (SAMA) for enabling us to unlock this added value for our stakeholders,” he stated.
“We also deeply appreciate the commitment of our partners at SIDF and Taulia in developing this innovative solution, which will significantly enhance our suppliers’ ability to meet customer needs and reinforce the stability of the supply chain ecosystem in our region,” he added.
Taulia CEO Cedric Bru said: “The deal establishes one of the world’s largest supply chain financing programs, and will provide an opportunity to access early payments for thousands of companies. Our goal is to ensure that cash flows fast and easily towards suppliers.”
“When done at scale, it creates opportunities for growth and investment for these businesses. We are tremendously excited and proud to make that a reality for Aramco and its trading partners. It cements our position as a leading FinTech provider of working capital solutions,” he noted.
The financing solution aims to unlock billions of Saudi Riyals in liquidity, enabling suppliers to optimise working capital, gain access to alternative financing, and strengthen business relationships.-TradeArabia News Service
Source: www.zawya.com