National Bank of Abu Dhabi (NBAD), the largest UAE lender by assets, and China State Construction Engineering Corp Middle East (CSCEC), a global engineering company with extensive Middle East operations, have signed an agreement for a fully automated Supply Chain Finance (SCF) programme, which will allow the Chinese corporate to offer better payment terms to its suppliers as well as enhance its cash flow management.
After executing a similar solution with a major airline, NBAD earlier this year became the first bank in the UAE to provide an SCF platform based in the region, which means that it can be customised for the commercial conditions in the Middle East. This new agreement with a global company brings NBAD’s trade finance offering to the next level by attracting global brands.
While SCF is well-established globally the solution is still nascent in the MENA region. SCF solutions create a win-win situation for the company and their suppliers. Suppliers – mostly SMEs - receive payments faster and directly from the bank. Corporates on the other hand benefit consequently from a healthier supplier community, thereby securing their own supply chain.
Vineet Varma, Managing Director and Head of GTB from NBAD said: “We are very proud of this solution, which emphasizes NBAD’s commitment to provide the best in class trade finance solutions. SCF is a sophisticated value-added product and NBAD is on the forefront of innovation in the region Our product suite , provides international and regional clients with the extensive support from a bank that has both local experience and the required depth of business in the region.”
Vivek Vohra, MD & Global Head of Traders, Retailers and Diversified Sector from NBAD said: “NBAD is delighted to serve the need of CSCEC via supply chain finance, as this will further strengthen the relationship between this company and NBAD”.
Li Ye, CFO of China State Construction Engineering Corporation Middle East (CSCEC) said: “Signing up to an SCF solution was a logical step for us in the direction of enhancing the quality of our relationship with our suppliers. This provides additional liquidity to our suppliers and enhances their ability to work with us in a timely fashion. Since the program is fully automated, this creates operations efficiencies. Working with NBAD as a partner helps us leverage their extensive resources in UAE & the region.”