Means of payment in Saudi Arabia

Collection

Exports to Saudi Arabia

  • Documentary Credit:
    a bank promise to pay payable on submission of proof of export documents. This is a commonly used method of payment in Saudi Arabia. It is the safest method for exporting goods to the region.
  • Collection:
    collection management of trade documents with the buyer by the local bank. This does not guarantee collection.
  • Transfer:
    this is the most insecure means of payment, for which reason sound knowledge of the importer/purchaser is required.

 

Payment

Imports from Saudi Arabia

  • Documentary Credit:
    a bank promise to pay payable on submission of proof of accrediting documents. Subject to internationally accepted ICC rules.
  • Import remittance:
    collection management of commercial documents with buyer by the Spanish bank.
  • Reverse factoring:
    financing without recourse for foreign suppliers.
  • Simple transfer:
    commonly-used payment and collection method.