MoU Signed in Frankfurt to Deepen Asia–Gulf Trade Relations
Singapore’s DBS Bank and Saudi Arabia’s Banque Saudi Fransi (BSF) have signed a memorandum of understanding aimed at improving the flow of trade and payments between Asia and the Gulf Cooperation Council (GCC) region. The agreement was formalised on 16 October 2025 during the Sibos financial conference in Frankfurt, underscoring both banks’ intent to strengthen financial linkages between the two regions.
The collaboration will focus on boosting trade settlement efficiency, developing joint financing opportunities, and enhancing currency-clearing options. BSF also plans to integrate DBS’s GlobeSend platform—designed to support same-day cross-border payouts—into its operations, a move expected to accelerate international transactions and provide clients with faster settlement times.
Trade Between Southeast Asia and GCC Set for Further Growth
DBS reported that trade between Southeast Asia and Gulf nations reached approximately USD 130.7 billion in 2023, with forecasts suggesting an increase of around USD 50 billion by 2027. The bank also cited data projecting that trade between China and GCC members could nearly double to USD 1.9 trillion by 2035. This momentum reflects a broader trend of expanding commercial and financial cooperation between Asian and Middle Eastern economies.
Executives from both institutions said the partnership will offer companies and consumers improved access to financial services that support regional trade expansion. By combining DBS’s technological infrastructure with BSF’s local expertise, the initiative aims to simplify cross-border operations and create new opportunities for businesses engaged in Asia–Gulf commerce.
Advancing Regional Integration Through Financial Collaboration
In addition to trade finance and payments, the two banks will explore other areas of cooperation such as treasury services and regional clearing frameworks. The agreement forms part of a wider push by financial institutions in Asia and the Middle East to establish faster, more transparent, and cost-efficient transaction systems.
Both DBS and BSF said the pact represents an important step toward building a stronger financial bridge between the two regions. The collaboration is expected to lay the groundwork for future projects involving digital transformation, sustainable financing, and broader economic integration.
