Riyadh - Mubasher: Saudi Aramco, a global leader in integrated energy and chemicals, and Taulia, an SAP company that provides working capital management solutions in the field of financial technology, signed agreements with the support of the Saudi Industrial Development Fund as one of the main financing providers for the local industrial sector, to work on establishing a supply chain financing platform.

The entities are collaborating to establish one of the largest supply chain finance programs in the world, which aims to provide an alternative source of financing at competitive prices for Saudi Aramco’s suppliers.

The company said that the new financial technology platform, which was announced during the eighth edition of the Future Investment Initiative in Riyadh, is expected to improve the liquidity of suppliers, in addition to enabling them to improve the accuracy of forecasting their cash flows, while enhancing the flexibility of Saudi Aramco’s supply chain.

Ziad Al-Murshed, Executive Vice President and Chief Financial Officer of Saudi Aramco, stressed that Saudi Aramco recognizes the importance of the role played by its suppliers in contributing to the continuity of its business, which enables the provision of energy and petrochemical products with high reliability and competitiveness around the world.

He pointed out that Aramco, in cooperation with its partners, provides its suppliers with this financial technology platform, enabling them to access unique and competitive financing opportunities. This platform also provides an investment opportunity for banks to participate in financing activities, which enhances the size and feasibility of the platform.

Al-Marshed expressed his gratitude to the Saudi Central Bank (SAMA) for enabling the company to achieve this added value for its customers, appreciating the commitment of its partners in the Saudi Industrial Development Fund and (Tulia) to developing this innovative technology, which will significantly increase the ability of its suppliers to meet customer needs, and enhance the stability of the supply chain system in our region.

Tulia CEO Cedric Bru explained that this deal between the participating parties constitutes the largest supply chain financing program in the world, which could provide thousands of companies with the opportunity to access early payments.

He pointed out that the platform aims to ensure the flow of cash quickly and easily to suppliers, and when this is done on a large scale, it creates opportunities for growth and investment for them, and that is why we are very excited and proud to make this a reality for Saudi Aramco and its business partners, and it also enhances our position as a leading provider of working capital solutions in the field of financial technology.

The financing platform aims to inject billions of riyals of liquidity, enable suppliers to improve working capital, gain access to alternative financing, and strengthen business relationships.