Strategic MoU Signed at Sibos to Enhance Cross-Border Trade Finance
Singapore’s DBS Group and Riyadh-based Banque Saudi Fransi (BSF) have signed a memorandum of understanding (MoU) to strengthen trade finance and payment connectivity between Asia and the Gulf Cooperation Council (GCC) region. The agreement was inked on 16 October 2025 at the Sibos conference in Frankfurt, marking a new phase of collaboration between one of Asia’s largest financial groups and a leading Saudi Arabian bank.
The partnership aims to facilitate smoother trade settlements, expand financing options, and explore regional currency-clearing arrangements. BSF is also expected to leverage DBS’s GlobeSend platform, which enables same-day cross-border payouts, to enhance the speed and efficiency of payments across DBS’s extensive global payout network.
Expanding Trade Corridor Between Southeast Asia and the Gulf
DBS noted that trade between Southeast Asia and the GCC reached approximately USD 130.7 billion in 2023 and is projected to grow by another USD 50 billion by 2027. The bank also cited forecasts that China–GCC trade volumes could double to USD 1.9 trillion by 2035, underscoring the growing significance of the Asia–Middle East corridor for global commerce.
Executives from both banks highlighted that the collaboration will help corporates and individuals capitalise on expanding trade and investment opportunities between the regions. The initiative is expected to support businesses seeking faster, more secure, and cost-effective cross-border transactions amid increasing regional integration.
Strengthening Regional Financial Links
Through the MoU, DBS and BSF intend to jointly explore solutions that promote financial inclusion and operational efficiency, focusing on trade settlement, regional clearing, and treasury management. The partnership complements broader efforts by Asian and Middle Eastern financial institutions to create interoperable systems that support real-time transactions across markets.
Both banks described the agreement as a step toward building a more connected financial ecosystem linking Asia and the Gulf, paving the way for future collaborations in areas such as digital banking and sustainable finance.
