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Letter of Credit Program for Saudi Industrial Development Fund (SIDF) Clients


In accordance with SIDF direction to support and develop kingdom's manufacturing throughout Industrial Development Programs. And based on the direction of SIDF to finance some of industrial projects that are compiling with the requirements of SIDF.

In coordination with The National Commercial Bank, SIDF launched the service of issuing letter of credit to directly finance the machinery and equipment to provide a sufficient liquidity for the project costs and to expedite project implementation process.

Features and Benefits:

The main benefit of letter of credit is to maximize control and minimize the risk associated with international trade by making transactions simpler, smoother and safer. So as NCB's Trade experts provide technical advice related to LC structure, payment terms and shipment terms related to the imported goods in alignment with client commercial activity. Processing the letter of credit in NCB is high efficient due to a strong relationship with our international corresponded banks and financial institutional. In addition to the competitive price provided by NCB exclusive to SIDF clients.

Applying process

Client must approach SIDF first to obtain approval prior to submit NCB's required applications to SIDF that are available below. Client must insure the correction and completion of required applications before it is being submitted to NCB through SIDF as per the agreed process with SIDF. In case of incompletion of application NCB will inform SIDF with the application failures then client will be informed through SIDF. Once a completed application is submitted again NCB will add the client to the program and notify SIDF and the client with advising letter that confirm the LC opening based on client request and SIDF approval and guarantee.

Contact SIDF

Toll-free: 8001660004


National Address: 6445 King Abdul-Aziz road - Adh Dhubbat Unit No.1 Riyadh 12627 - 3975 Kingdom of Saudi Arabia.



Letter of Credit

NCB will help you choose the right credit instruments for your import export business. Letters of credit are the most effective means of securing payment and offers buyers and sellers a higher degree of security.

In a Letter of Credit:

  • An importer (buyer)’s bank conditionally guarantees payment to the exporter providing documents submitted by the exporter comply with all the conditions specified.
  • An exporter (seller) receives the conditional guarantee of payment from another bank opening the letter of credit on behalf of the importer. It may also be possible to receive the additional guarantee of another bank known as “confirmation”

NCB offers various types of Letters of Credit

Following are the various types of Letters of Credit, each is dependent on the method of settlement:

  • Sight Draft is the most commonly used Letter of Credit as it provides payment to the beneficiary immediately after presenting all stipulated documents.
  • Deferred payment is when the seller receives payment at a later date. The buyer gains possession of the stipulated documents (and thereby the goods and services) before the amount is debited from his/her account
  • Red clause is when the seller obtains an advance payment for an agreed amount to finance the manufacturing or purchasing of goods that are going to be shipped under the Letter of Credit.
  • Revolving Credit is when the seller receives the payment in fixed installments for goods dispatched at specified intervals.
  • Standby is used as a form of a back-up guarantee

NCB's Trade experts provide prompt and professional advice on the structure and type of Letter of Credit your business requires. We also ensure that Letters of Credit are processed quickly, ensuring settlement without delay.​