SOCAR Trading explores credit lines in Dubai – sources

A team of experts from SOCAR Trading, led by newly appointed CEO Natig Mustafayev, held talks in Dubai with a group of partner banks, haqqin.az has learned.

According to sources, the purpose of the visit was to review recent performance and discuss the establishment of new credit lines to support SOCAR Trading’s commercial operations.

Meetings were held with representatives of the National Bank of Ras Al-Khaimah (RAKBANK), as well as commercial banks in Dubai and Abu Dhabi, Mubadala's financial arm, and other institutions.

While the details of the negotiations have not been disclosed, the talks marked Mustafayev’s first official engagement as the new head of SOCAR’s international trading unit.

“Trade finance loans obtained by SOCAR Trading are typically short-term, offered at competitive interest rates, and repaid promptly after product delivery,” an oil sector expert told haqqin.az.

SOCAR Trading enjoys a strong business reputation and maintains relationships with over 40 banks across Europe, Asia, and the United States.

In light of new regulations affecting European banks, some of SOCAR Trading’s partners – including ING Group, Raiffeisen-Boerenleenbank B.A. (Rabobank), and Societe Generale – may now focus lending on projects that support energy security and transition. However, leading European banks are expected to end financing for fossil fuel exploration and production by 2040.

Among SOCAR Trading’s key financial partners are Bank of Tokyo-Mitsubishi UFJ Ltd, First Abu Dhabi Bank, Akbank, National Bank of Fujairah, Borak, Erste Group, and several major U.S. banks.

Since 2022, SOCAR Trading has also been involved in carbon emissions trading, and its Paper Trading Desk continues to implement a global hedging strategy for hydrocarbons and their derivatives.