ASMO and J.P. Morgan sign MoU to develop working capital and supply chain financing solutions in Saudi Arabia
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ASMO, the joint venture between Saudi Aramco Development Company and DHL, has signed a memorandum of understanding (MoU) with J.P. Morgan during the Supply Chain and Logistics Conference in Riyadh. The agreement establishes a framework to explore working capital and supply chain financing solutions designed to enhance liquidity, improve access to capital, and strengthen end-to-end supply chain performance across Saudi Arabia.
The partnership leverages J.P. Morgan’s global expertise in working capital optimisation and digital trade solutions. It also defines guiding principles for potential future agreements and the deployment of solutions in line with Saudi Vision 2030 objectives.
James Fraser, Global Head of Trade & Working Capital at J.P. Morgan, said, “We are proud to support ASMO by bringing our global expertise in working capital and digital trade solutions to this strategic collaboration.”
It also defines guiding principles for potential future agreements and the deployment of solutions in line with Saudi Vision 2030 objectives.
Innovative financial solutions for supply chain optimisation
Under the MoU, J.P. Morgan Payments will focus on developing off-balance sheet inventory finance tools enabling ASMO’s customers in Saudi Arabia to free up critical working capital through innovative structures. The partnership will address a broader range of trade finance options, including payables and receivables finance solutions, on-balance sheet financing alternatives, and digital transaction capabilities.
These models will accelerate supplier payments, extend buyer terms, provide flexible funding options, and enable faster, digitally connected transactions.
On this, Saad Al-Hajri, Chief Procurement Officer at ASMO, quoted “Access to efficient, reliable financing is a critical enabler of supply chain transformation. This collaboration lays the groundwork for solutions that reinforce national objectives, improve liquidity for suppliers, and support the operational scale ASMO is building across key industrial sectors.”
Supporting Saudi Vision 2030
This partnership directly supports Saudi Vision 2030 goals by advancing digital financial infrastructure, expanding access to flexible capital, and reinforcing the foundations of industrial growth across the Kingdom.
Saudi Vision 2030 is an economic and social reform blueprint launched in 2016 to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors. Built on three pillars, a vibrant society, a thriving economy, and an ambitious nation, it aims to position Saudi Arabia among the top 15 largest economies globally by 2030.
The vision includes specific targets to increase non-oil exports, raise the private sector’s and SMEs’ contributions to GDP by 65% and 35%, respectively, and increase Foreign Direct Investment in the country to 5.8% of GDP.
The ASMO-J.P. Morgan partnership is expected to play a key role in this by enhancing the competitiveness of Saudi Arabia’s industrial sectors through optimised capital allocation and improved supply chain resilience.