PIF Launches ‘Tawrid’ to Boost Saudi Supply Chain Finance

Public Investment Fund (PIF) in Saudi Arabia has established “Tawrid Financing Solutions,” a business that specialises in supply chain financing using a digital platform that links suppliers and companies with financial institutions. This action will improve local supply chains and make it easier for the private sector to obtain liquidity.

According to a statement issued by the PIF on Sunday, the Saudi Central Bank has permitted Tawrid to start testing its activities inside the regulatory sandbox. Saudi National Bank (SNB), Banque Saudi Fransi (BSF), Gulf International Bank (GIB) Saudi Arabia, ROSHN, and Nesma & Partners are just a few of the banks and companies with which the company has already started operations and signed legally binding contracts.

Notably, this initiative is a component of the sovereign wealth fund’s larger initiatives to strengthen supply chains throughout the Kingdom and expand the local supplier base. According to the programme’s website, the PIF’s “Supplier Development Programme” seeks to create long-term strategic alliances between PIF-owned businesses and their suppliers to develop and improve supplier capabilities.

Financing Receivables & Enhancing Liquidity

By providing supply chain finance products, such as early payment for authorised invoices, the platform will assist businesses in managing working capital and financing expansion by giving them access to liquidity ahead of invoice due dates.

Additionally, ‘Tawrid’ will link local banks registered on its platform with participating suppliers. The initiative aims to bolster the private sector, especially small and medium-sized enterprises (SMEs), while promoting the digitalisation of trade and expanding financial services within the Kingdom.

Sultan Al-Sheikh, Head of Financial Institutions at the Public Investment Fund’s MENA Investments Division, highlighted that Tawrid aims to bolster local supply chains and enhance their resilience. Companies will achieve this by improving access to finance and optimising cash liquidity management.

The company aims to offer supply chain finance solutions that enhance operational efficiency and flexibility for businesses, thereby fostering additional opportunities within the local private sector. Tawrid has initiated operations and has signed binding agreements with multiple local banks and corporations, including Gulf International Bank (Saudi Arabia), Saudi National Bank, Banque Saudi Fransi, ROSHN Group, and Nesma & Partners.

Read more: PIF Seals $24.5 Billion in Financing & Guarantee Partnerships

Supply Chain Financing Advances PIF Strategy

The company’s launch will support the objectives of the Public Investment Fund (PIF), including increasing the participation of Saudi companies in various projects. This initiative aims to enhance the capabilities of local suppliers, significantly promoting the localisation of spending and strengthening supply chains in Saudi Arabia.

Saudi Arabia’s efforts extend beyond developing local supply chains; the “Global Supply Chain Resilience Initiative”—launched by the Saudi Crown Prince in 2022—aims to attract strategic supply chains to the Kingdom and increase its market share in sectors where it holds competitive and strategic advantages.

Besides, this initiative aims to enhance the Kingdom’s capacity to maintain trade flows amid potential supply chain disruptions. The Council of Ministers recently approved a facility to insure goods and vessels against war risks, which is intended to bolster the insurance market’s ability to manage maritime risks and support trade continuity. The Saudi Reinsurance Company is spearheading this initiative, supervised by the Insurance Authority and involving participation from various insurance companies.

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These efforts are in line with the National Transport and Logistics Strategy, aimed at establishing the Kingdom as a global logistics hub through infrastructure development and improved integration of transport and logistics modes. Furthermore, the Fund identifies financial services as a strategic facilitator for the six economic ecosystems outlined in its 2026-2030 strategy. ‘Tawrid’ aims to further enhance opportunities for local suppliers and increase private sector involvement in economic diversification.

The Public Investment Fund (PIF) is a major global investment organisation dedicated to developing new sectors and opportunities. Its strategic goals include shaping the future of the global economy, generating profitable returns, and facilitating economic transformation in the Kingdom.

Read more: The PIF’s 2026-2030 Strategy on KSA’s New Priorities