The invitation-only only Saudi Trade Finance (STF) Summit is set to return for its 4th annual gathering in Jeddah, Saudi Arabia on Nov. 15-16, 2016. A primary focus for the 2016 Summit is on enabling opportunities in the diversification of non-oil based economic congruent with ‘Vision 2030.' In a recent interview, Al Rajhi Bank, a platinum sponsor at the 2016 STF Summit, said Saudi Arabia's Vision 2030 economic development plan will unlock the full potential of the SME sector in Saudi Arabia by addressing the challenges SMEs encounter, and by focusing on initiatives to increase the size of the SME segment and its participation in and contribution to Saudi's GDP. One way of increasing SME participation is to increase support and access to finance. If trade finance products and solutions were composed of low technical skills or terminology the products will be more accessible to SMEs. As such SMEs will have resources to draft more innovative and offer other standardized products. "SME financing is a challenging issue that cuts across the GCC. There is a need for new financial tools, products, and policies to ensure the SME segment does not stagnate. At the 4thannual STF Summit we will hear about the unique challenges SMEs face, and potential solutions to these from professionals in the banking and finance sector, and how trade finance can be applied to these challenges especially in the current regional and global economic and trading contexts," noted Sidh N.C, Director, QnA International. Another highly anticipated section of the STF Summit are the discussions and sessions on the current economic, financial, and trade environments in Saudi Arabia, the GCC region, and globally. The changing roles of banks and financial institutions will also be a highlight of the Summit. Currently there are liquidity squeezes in the Saudi markets and interest rates are on an inclining trend. As such, corporate organizations are beginning to explore methods for reducing borrowing costs and enhancing working capital management. A method of attempting this is by utilizing the power of the organizations' credit rating and leveraging relationships with suppliers and accounts receivables. However, banks too, have started to respond to requirements emerging from corporate organizations by innovating new products and solutions through supply chain finance solutions. Al Rajhi Bank suggested that banks can play an advisory role by providing SMEs and other organizations information and data required for developing strategic visions for expansions across customer segments and markets, and the support and guidance necessary for managing and growing their businesses in a more efficient manner. Trade finance which represents a considerable percentage of international trade is still the tool of choice for most corporate organizations for trading mega deals with suppliers, and with high-risk developing countries will undoubtedly be the central focus at the STF Summit. Sponsorship of the event is important for Al Rajhi Bank as it the Summit attracts decision makers from various segments of the corporate world into a single place and promotes the exchange of ideas about growing trade business and the latest trends in global trade finance, while also help in establishing new connections for collaboration.
