Trade Solutions

alinma offers a comprehensive range of international trade services designed to support the growth and development of your business in global markets.

These services provide financial products and tailored solutions for local and international companies, financial institutions, and public sector entities. The offerings include import and export services such as the issuance of letters of guarantee and shipping guarantees, documentary credits, and documentary collections.

International Transaction Methods

Letters of Guarantee
alinma issues letters of guarantee confirming the customer’s possession of a specific guarantee, with alinma undertaking to deliver it to the customer. Investors can also use a letter of guarantee in call option scenarios if the underlying securities for the option contract are unavailable in the customer’s brokerage account.

Easily issue your business's bank guarantee electronically through the "Etimad" platform.

Issuance Process of a Bank Guarantee:

1. Log in to the Etimad platform.
2. Select the "Bank Guarantee" service.
3. Submit a request for the bank guarantee issuance by choosing alinma Bank.
4. Your request will be received, and the bank guarantee will be issued.
5. The Etimad platform will automatically link the issued bank guarantee to the government competition.

You will receive a service request notification in the private sector immediately after the bank guarantee is issued, with the option to view and print it.

• Key Benefits of the Bank Guarantee Service:
  Easy and efficient electronic management of bank guarantees.
• Automatic linking of the bank guarantee to government tenders.
• Quick automatic cancellation of initial guarantees for non-winning competitors upon contract award.

Click here to access the service

Documentary Credits

• Import Letter of Credit (LC):
  An import LC is issued when a client wishes to import goods from a country other than where the issuing bank operates. In certain cases, the letter of credit may also be used locally for specific projects such as construction or industrial zone developments.
• Export Letter of Credit (LC):
  A range of services provided by the bank to the exporter in their country of operation upon receiving a letter of credit from the issuing bank. These services include advisory on the letter of credit, document acceptance and verification, presentations, settlements, and more.

Documentary Collection
A process in which the bank collects payments due from the buyer in exchange for delivering the relevant documents. The bank acts as an agent on behalf of the seller (exporter), presenting documents to the buyer (importer) through the buyer’s bank, and in return receives payment or obtains acceptance of a bill of exchange for deferred payment.

Documentary collection is divided into two types:

1. Incoming Documentary Collection
   In this case, the bank is referred to as the collecting bank (buyer's bank), the presenting bank (seller's bank), or both (if the buyer and seller hold accounts at the same bank).
2. Outgoing Documentary Collection
   In this case, the bank is referred to as the remitting or paying bank for the collected amount.

Refinancing Letters of Credit through Murabaha
When a customer requests a participation letter of credit, they cover a portion of its value, while Alinma covers the remaining amount to fulfill the total value of the credit. The bank then refinances its share through a Murabaha settlement agreement, requiring the customer to repay the bank’s share along with the agreed profit on the due date.

Guarantee Verification Service
This service enables relevant parties to access and verify the authenticity of the issued guarantee directly through the bank.

Service Forms Table: