ASMO, the joint venture between Saudi Aramco Development Company and DHL, has signed a memorandum of understanding with J.P. Morgan at the Supply Chain and Logistics Conference in Riyadh. The agreement sets out plans to assess working capital and supply chain finance solutions aimed at improving liquidity, widening access to funding, and supporting stronger supply chain operations.
The memorandum establishes a framework for both organisations to review financing structures linked to ASMO’s procurement, logistics, and inventory activities. It also outlines shared principles that could guide future agreements and the rollout of potential solutions.
Under the collaboration, J.P. Morgan Payments will provide services focused on developing off-balance sheet inventory finance tools. These tools aim to help ASMO’s customers in Saudi Arabia release working capital through structured financing approaches. The parties will also examine a wider range of trade finance options, including payables finance, receivables finance, and other on-balance sheet solutions. The proposed models seek to speed up supplier payments, extend buyer payment terms, offer flexible funding, and support faster, digitally connected transactions, in line with ASMO’s focus on efficient and resilient supply chains.
“Access to efficient, reliable financing is a critical enabler of supply chain transformation,” said Saad Al-Hajri, Chief Procurement Officer at ASMO. “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.”
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.”
The collaboration aligns with Saudi Vision 2030 by supporting the development of digital financial infrastructure, improving access to flexible capital, and strengthening the foundations for industrial growth across the Kingdom.