Three organizations have collaborated to launch a significant supply chain financing initiative for Aramco’s suppliers. Aramco, Taulia, and the Saudi Industrial Development Fund (SIDF) have signed agreements to establish this program, which is considered one of the largest globally.
Ziad T. Al-Murshed, Aramco’s CFO, emphasized the benefits of this FinTech solution, stating it offers suppliers a unique and competitive financing opportunity. Additionally, banks can participate as finance providers, boosting the solution’s scale.
This initiative aims to unlock substantial liquidity, offering Aramco’s suppliers an alternative financing source, improving their cash flow management and enhancing the resilience of Aramco’s supply chain.
Taulia’s CEO, Cedric Bru, highlighted that the program will enable thousands of companies to access early payments, facilitating growth and investment opportunities.
In April 2021, it was reported that Aramco was considering a supply chain finance project to finance billions in supplier payments monthly. Aramco has over 10,000 suppliers in Saudi Arabia.
In a related development, energy company Eni launched a supply chain finance program in March 2023 to support sustainable development, allowing suppliers committed to sustainability to request early invoice payments.
Previously, Taulia partnered with Visa to integrate virtual payment credentials into SAP business applications.
