Data from Saudi Arabia is confirming an upturn in letter of credit (L/C) business in the Kingdom.

The value of new import L/Cs opened in January 2010 was 12.9 per cent higher than January 2009, according to figures released by the Saudi Arabia Monetary Authority (SAMA).

Machinery

An even sharper upturn over the New Year is reported by SAMA, which says that the value of import L/Cs opened in January 2010 was 28.6 per cent higher than December 2009.

The value of new L/Cs for machinery imports increased by 47.4 per cent in January 2010 compared with the same month last year.

Building materials

Saudi companies are also importing more building materials as the construction sector regains pace.

The value of new import L/Cs opened for building material imports, which slumped 41.3 per cent in 2009, increased by 48 per cent in January 2010 compared with the same month last year.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.