The Saudi British Bank (SABB) has signed a memorandum of understanding (MoU) to support the authority charged with realising Saudi Arabia's ambitious plans to create the world's largest culture and heritage destination, which aims to attract more than 25 million visitors annually.

The bank, in which HSBC is the majority shareholder, is expected provide letters of credit (L/Cs) amongst other financial services to the Diriyah Gate Development Authority (DGDA).

MoU and purchase agreement

The DGDA has signed a MoU to strengthen cooperation in banking services and a purchase agreement for residential units with SABB, the Saudi Press Agency has reported.

Under the agreement, the two parties will explore the possibility of SAAB providing financial investment products to DGDA commensurate with the cash flows of each of its projects.

L/C provision

Chief executive officer of DGDA, Jerry Inzerillo, says he is looking forward to partnering with the bank that he expects will support the authority's operations with export and import L/Cs as well as letters of guarantee and cash management solutions.

The bank is also expected to provide development consultations for investment opportunities, as well as a full range of banking services at competitive prices to the DGDA and its employees.

Improved efficiency

Inzerillo says SABB's e-commerce products have already helped the DGDA increase administrative efficiency.

SABB recently launched a new digital trade solutions package aimed at enhancing L/C and guarantee processing in international business transactions (DC World News, 9 November 2022).

Ambitious plans

Diriyah Gate is a seven square kilometre masterplan development and a key strategic initiative for Saudi Arabia's non-oil economic development.

The government is anticipating the mega-projects in the development will provide 55,000 job opportunities and add the equivalent of US$7 billion to the kingdom's overall GDP by 2030.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.