The price of oil per a barrel has plummeted from $110 in June 2014 to below $50 in November 2015. While choosing to maintain the production of oil supply to retain global market share, the Saudi Arabian government has had to re-align its expenditure to cope with a budget deficit caused by declining oil revenues. An avenue that the Saudi government can explore for the development of its economy is regional and international trade in goods and services. Although, international trade itself has slowed to 2.5% of merchandise goods, the opportunities to diversify the Saudi economy are plenty. "It is now more than ever, pertinent to discuss trade finance and how this can be leveraged to achieve economic diversification plans in Saudi Arabia,'' stressed Sidh N.C, Director, QnA International, which is set to host the third annual summit on Saudi Trade Finance (STF) bringing together C-level executives from the Kingdom's banking and corporate sector together to discuss the challenges of trade finance development within the current dynamic environment. The two-day summit will feature in-depth and timely discussions on the banking, finance, and non-oil sectors' contribution to the development of Saudi Arabia's economy in the present weak oil prices. "Saudi Arabia is the 19th largest export and the 20th largest import market in the world. Saudi Arabia's membership in the WTO since 2005 boosts commercial activity and provides Saudi products with more opportunities in global markets," elaborated Majed Al –Osailan, CFAO, City Cement Company, on Saudi's role in international trade. An important component for the fluid flow of international trade is trade finance, he said. "Regionally, trade finance has flourished and diversified its product base over the decades beginning with the Oil boom in the early ‘70s where Letters of Credit and Letters of Guarantee were the major finance instruments, to the recent recession in which Supply Chain and Cash Flow Management gained prominence,'' said Yaser Ali, CFO, Issam K. Kabbani Group of Companies who will be speaking on risk assessments at the summit. A report on the Evolution of Trade Finance conducted by Swift and OPUS Advisory Services suggests that 80-90% of global merchandise trade flows are supported by a form of trade finance. This is also true of "Traders in the region who recognize that export activities entail extra upfront expenditures which usually force firms to rely on external finance," said Ehab Zain AL-Abdeen, General Manager, Rolls Royce Saudi Arabia, who is a panelist debating the risks and opportunities in a volatile world panel. This year's STF summit will feature a variety of keynote sessions, panel discussions, and ample space for participatory discussions involving the audience. Key among these, will be ICC Saudi Arabia's presentation of its 2015 report findings of latest trends in trade finance globally and its impact on Saudi Arabia. Sponsors of the STF summit include Platinum sponsors Banque Saudi Fransi, Riyad Bank, Saudi Hollandi Bank; Gold sponsors ANB, Bank AlJazira, Coface, Microsoft, SAP; Analytics partner SAS; Official broadcaster CNBC; and Media partner Cash & Trade Magazine. The STF summit will be held at the Al Faisaliah Hotel, Riyadh on Nov. 10-11.
