SABB Bank succeeds in executing the first blockchain transaction between Saudi Arabia and Bahrain.

For the first time, SABB and HSBC used blockchain technology in Saudi Arabia and Bahrain to finance international trade.

The deal included the shipment of monolithic aluminum rods from “Aluminum Bahrain B” to Saudi Al-Tayseer Aluminum Company “Talco”.

Talco’s letter of credit was issued on a blockchain-based platform using R3’s Corda system.

This move puts Saudi Arabia and Bahrain at the forefront of global trade.

It offers new levels of efficiency, security and transparency as companies look to access new markets.

Majed Najm, Deputy Managing Director of Corporate and Institutional Banking Services at The Saudi British Bank said:

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There has been a lot of excitement about the trading benefits of blockchain, so I am proud that we were the first to use it to improve how Saudi companies trade internationally.

A blockchain company can improve many aspects of international trade, so it is great to be in a position to pioneer these changes for the benefit of our customers and the economy.

While the statement of Malika Betley, CEO of HSBC Bank Bahrain, was as follows:

As the world’s leading trade finance bank, HSBC actively supports the adoption of technologies such as blockchain to make global trade faster, safer and simpler.

As trade continues to grow within the region, we see huge potential for blockchain in the GCC.

I am glad that this deal has included Bahrain and contributed to its strength as a high-tech ecosystem.

This transaction further demonstrates the commercial and operational viability of the blockchain as an alternative to the traditional exchanges of paper documents.

This blockchain service has replaced the traditional processes of letter of credit terms approval, application, issuance, advice, modification request and approval, document presentation, conflict resolution, and invoice settlement instructions and made it all in one blockchain platform.

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The “R3’s Corda” blockchain is used to track and trace information as it moves between parties.

Corda technology keeps all stakeholders in sync, reducing the need for reconciliation and speeding up transactions.

Sulaiman Al-Oufi, General Manager of TALCO, said:

We are happy to be the first to experiment with using a blockchain in this way.

We have always been innovative in terms of technology related to our product, so it is a natural development to explore innovation that helps us trade more efficiently with our key external partners.

We are pleased that banks such as SABB are exploring new avenues for international trade for Saudi companies.

as such after Mr. Ali Al Baqali, Acting CEO of Aluminum Bahrain (Alba), stated:

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Bahrain is on its way to establishing itself as a hub for digital solutions specifically in the digital economy within the region.

At Alba we not only consider ourselves a supplier of aluminum, but we also want to recognize our progress in selling and trading more efficiently through digital platforms with our major partners such as TALCO.

Blockchain technology allows trading operations to be faster and with minimal fees, making trade more attractive and accessible than ever before.

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