GCC Trade Finance Market

Market Overview:

The GCC trade finance market size reached USD 1.0 Billion in 2024. The market is projected to reach USD 2.0 Billion by 2033, exhibiting a growth rate (CAGR) of 7.3% during 2025-2033. The growing economic diversification, favorable government initiatives and policies, rapid technological innovations, ongoing investment in infrastructure and the rising small and medium-sized enterprises (SMEs) represent some of the key factors driving the market.

Trade finance is a vital component in international trade that drives transactions and fosters business growth. It encompasses various financial instruments and products designed to facilitate the buying, selling, and trading goods and services. Trade finance involves letters of credit (LCs), trade credit, export and import financing, and more. It involves banking institutions, exporters, importers, and various intermediaries working together to establish terms and conditions and provide funding. Trade finance has extensive applications in automotive, technology, healthcare, energy, retail, transportation, manufacturing, construction, agriculture, hospitality, and others. It enhances global economic development, provides working capital, minimizes risk, ensures payment security, promotes international trade relationships, and aids in regulatory compliance. It offers several advantages, including financial flexibility, streamlined processes, reduced trade barriers, improved efficiency, support in managing currency fluctuations, fostering business expansion, and creating opportunities for small and medium-sized enterprises (SMEs).

GCC Trade Finance Market Trends:

Technological Advancements in Trade Finance

The extensive use of advanced technologies, including blockchain, artificial intelligence (AI), and cloud computing, is resulting in notable enhancements in efficiency, security, and transparency within trade finance activities. These advancements streamline and accelerate essential tasks, such as document validation, fraud identification, and payment handling, which previously depended on labor-intensive and lengthy methods. By automating routine tasks, these technologies lower operational expenses, simplify workflows, and decrease human error, thus improving the overall efficiency of trade finance services. Financial institutions throughout the GCC are utilizing these innovations to enhance their competitive advantage, guaranteeing that they can deliver quicker, safer, and more dependable solutions to companies involved in international trade. Additionally, this move towards automation is making trade finance more accessible, generating new chances for smaller participants and promoting increased inclusivity in the trade finance landscape.

Increased Focus on Sustainability and Green Finance

With environmental, social, and governance (ESG) standards becoming more essential to business operations, financial institutions in the area are progressively embedding these principles into their trade finance offerings. The GCC's emphasis on renewable energy and sustainable sectors is leading to the creation of financial offerings designed for environment-friendly initiatives. This move towards sustainability aligns with the worldwide trend of emphasizing eco-friendly initiatives, including renewable energy and sustainable construction. Financial institutions are reacting by providing financing options that address businesses' financial requirements while also aiding larger environmental objectives. A significant instance of this trend is the 2024 collaboration between PDS Ltd and HSBC Bank Middle East, which introduced a sustainable trade financing solution. This facility aimed to incorporate environmental performance into trading activities by establishing objectives to cut expenses related to sustainability, including reducing greenhouse gas emissions and water usage. The agreement also signified HSBC’s initial sustainable finance initiative sanctioned by regulators in both the UAE and Hong Kong, further enhancing the region’s dedication to green trade finance options.

Strategic Partnerships Enhancing Operational Efficiency

Collaborative alliances between financial institutions and logistics companies are supporting the growth of the GCC trade finance sector as they combine financial products with supply chain expertise, enabling more efficient and secure cross-border transactions. These partnerships merge the financial institutions' knowledge in delivering financial services with the operational experience and international access of logistics firms, resulting in more effective and all-encompassing trade finance options. A notable illustration of this is the collaboration established in 2024 between BBK of Bahrain and DP World Trade Finance. This partnership combined BBK’s banking services, including letters of credit, with DP World’s supply chain management strengths, allowing both sides to enhance operational efficiency. The collaboration enhanced BBK’s services in important markets such as Bahrain, UAE, India, and Turkey by integrating financial services with supply chain management. This improved collaboration enhances client experience by simplifying the trade finance process and enables businesses to manage the challenges of cross-border trade more efficiently, thereby supporting the growth of the market.

GCC Trade Finance Market Growth Drivers:

Strengthening Economic Diversification Efforts

The governing bodies in the region are stiving to decrease their dependence on oil and gas and increasingly investing in non-oil industries like manufacturing, logistics, and technology. This shift is encouraging both regional and international trade, with a growing number of industries requiring trade finance solutions to support their expansion. The rising need for funding across these various sectors is making trade finance an essential instrument for economic growth. In reaction, banks and financial institutions in the region are adjusting their services to accommodate the changing requirements of these sectors. A notable instance of this is the 2024 introduction of the Co-Cover Scheme by Emirates Development Bank (EDB) and Etihad Credit Insurance (ECI), designed to bolster trade credit for SMEs and larger businesses in the UAE. The project focused on critical industries like manufacturing, renewable energy, and healthcare, offering improved financial stability and supporting the UAE's Vision 2031 aimed at diversifying and bolstering the economy.

Growth of E-commerce and Digital Trade

With a rising number of businesses, especially small and medium-sized enterprises (SMEs), depending more on online platforms for international trade, the need for adaptable and digital trade finance options is increasing. These companies need financial solutions that can support their global sales while mitigating risks like payment delays and currency changes. The combination of e-commerce and trade finance services facilitates quicker, more streamlined transactions, reducing risks and improving liquidity for online enterprises. Significantly, the e-commerce sector in the GCC achieved USD 507.2 Billion in 2024 and the IMARC Group anticipates that the market will expand to USD 2,020.6 Billion by 2033, demonstrating a compound annual growth rate (CAGR) of 15.3% from 2025 to 2033. To address this expansion, financial organizations in the area are creating tailored offerings, including digital trade platforms and instant payment options, to facilitate this digital transition and enhance the need for trade finance solutions.

Strategic Infrastructure Development

The substantial investments being made in infrastructure across the GCC region are playing a crucial role in driving the demand for trade finance. Large-scale projects, such as the expansion of ports, the development of logistics hubs, and the improvement of advanced transportation networks, are all contributing to this growth. These infrastructure advancements are greatly improving the effectiveness of supply chains and trade pathways, which subsequently creates a better atmosphere for companies seeking to participate in international trade. With enhanced logistical capabilities, the region is becoming more appealing to international firms aiming to start or broaden their activities in the GCC. Moreover, these advancements not only enhance international trade but also promote regional trade, resulting in an increase in the demand for financial products that support the flow of goods and services. To meet the growing demands of these expanding trade networks, financial institutions in the region are continually expanding and evolving their trade finance solutions, ensuring they can effectively support the evolving needs of businesses engaged in international commerce.

GCC Trade Finance Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC trade finance market report, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on finance type, offering, service provider and end user.

Breakup by Finance Type:

• Structured Trade Finance
• Supply Chain Finance
• Traditional Trade Finance

The report has provided a detailed breakup and analysis of the market based on the finance type. This includes structured trade finance, supply chain finance and traditional trade finance.

Breakup by Offering:

• Letters of Credit
• Bill of Lading
• Export Factoring
• Insurance
• Others

A detailed breakup and analysis of the market based on the offering has also been provided in the report. This includes letters of credit, bill of lading, export factoring, insurance, and others.

Breakup by Service Provider:

• Banks
• Trade Finance Houses 

A detailed breakup and analysis of the market based on the service provider has also been provided in the report. This includes banks and trade finance houses.

Breakup by End User:

• Small and Medium Sized Enterprise (SMEs)
• Large Enterprises 

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes small and medium sized enterprises (SMEs) and large enterprises.

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

The report has also provided a comprehensive analysis of all the major regional markets, which include Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, and Oman.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• In August 2025, BankDhofar and Development Bank signed a strategic MoU to enhance trade finance access for Omani SMEs, start-ups, and development-focused enterprises. The partnership aims to streamline LC issuance, improve service quality, and ensure regulatory compliance. This collaboration will help smaller enterprises compete globally by leveraging both banks' strengths in trade finance and sectoral expertise.
• In July 2025, Salman Corporation launched Oman’s first-ever Trade Finance Marketplace in partnership with Cassbana and Mamun. The platform introduces a Buy-Now-Pay-Later (BNPL) solution for small and medium-sized retailers, enabling instant inventory purchases and payments without traditional banking friction. This initiative aims to enhance access to working capital and support inclusive, tech-enabled trade in Oman.
• In June 2025, UAE-based Fuze signed an MoU with Oman’s Mamun to facilitate trade finance using USDT (Tether’s stablecoin). The partnership aims to provide Sharia-compliant financing for SMEs, bridging digital assets with traditional private credit markets. This collaboration seeks to address the trade credit gap in the MENA region and enable smoother cross-border trade finance.
• In February 2025, Invest Bank partnered with Veefin Solutions to enhance its trade finance offerings by implementing an advanced Supply Chain Finance (SCF) system. This digital solution aims to optimize cash flow, improve working capital efficiency, and streamline receivables and payables management for businesses in the UAE. The partnership addresses the growing demand for seamless, tech-driven trade finance solutions, especially for SMEs.
• In February 2025, Al Rajhi Bank announced a strategic partnership with MuhideFinTech Platform, owned by RATL Technology, to empower SMEs in Saudi Arabia through a secure, blockchain-enabled trade finance system. The platform aims to authenticate and govern trade transactions, reducing disputes and enhancing business efficiency. This collaboration aligns with Saudi Arabia's Vision 2030 by fostering digital transformation and attracting investments.

GCC Trade Finance Market Report Scope:

Key Questions Answered in This Report:

• How has the GCC trade finance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the GCC trade finance market?
• What is the breakup of the GCC trade finance market on the basis of finance type?
• What is the breakup of the GCC trade finance market on the basis of offering?
• What is the breakup of the GCC trade finance market on the basis of service provider?
• What is the breakup of the GCC trade finance market on the basis of end-user?
• What are the various stages in the value chain of the GCC trade finance market?
• What are the key driving factors and challenges in the GCC trade finance market?
• What is the structure of the GCC trade finance market and who are the key players?
• What is the degree of competition in the GCC trade finance market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC trade finance market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC trade finance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC trade finance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.