The Enduring Relevance of Trade Finance

Trade Finance Career Spotlights: K. Nizardeen

K. Nizardeen has been around the trade finance scene in the Middle East for quite a while and although still based in UAE, he currently manages Development Bank of Maldives as CEO, shuttling between Dubai and the archipelagic country in the Indian Ocean. Here, he reflects on his engagement in trade finance and its essential part of the global trading system.

Looking back, how did you first come into this business — and what do you think originally drew you to it?

Looking back, my entry into trade finance came through my early involvement in international banking where I was exposed to import and export transactions and the mechanics of documentary credits, collections, and open account. What initially attracted me to the field was the realization that trade finance is not merely a banking product, but an essential part of the global trading system. Trade finance facilitates world supply chains, enabling the movement of critical commodities such as food, energy, and manufactured goods across continents. I was particularly fascinated by how the trade finance ecosystem keeps the global commerce moving. Also, trade finance acts as a financial bridge that connects producers, traders, and buyers across different jurisdictions across the globe.

Over the course of your career, what has changed most in how you see the industry or your role within it?

During my long career the trade finance industry has evolved significantly, but the most transformative change has been the shift from traditional, paper-based, manual systems to digital technology-driven processes. This transformation has reshaped every aspect of the industry, how global trade is financed, executed, regulated, and risk managed. Technologically, digital documentation, blockchain, AI, and API-driven platforms has been the most impactful transformation in trade finance, fundamentally altering how transactions are processed, risks are managed, and trade is financed globally.

Another aspect which is considered a hindrance is the compliance part and emergence of TBML. Shariah-based Islamic Trade Finance products have emerged in a big way. Also, digital rules enablement stands out as a core change.

What has kept you engaged in this field over the long term, even as the work and the rules have evolved?

Trade finance operates at the intersection of global commerce, regulation, maritime trade, customs, and supply chain finance with movement of real goods ultimately supporting economic growth and livelihoods across nations. Trade finance keeps you engaged as it combines complexity, purpose, international relevance, digitalization, and continuous evolution without becoming intellectually static. I feel engaged because there is a scarcity of expertise in the field of trade finance. Years of experience become part of one’s professional legacy. Ultimately, what keeps me engaged in trade finance is its enduring relevance. It is a discipline that continuously evolves, yet remains central to economic resilience and development. It demands strategic thinking, ethical clarity, and institutional stewardship. Being part of that process has always been both intellectually stimulating and professionally rewarding. 

Trade finance is a discipline that continuously evolves, yet remains central to economic resilience and development. It demands strategic thinking, ethical clarity, and institutional stewardship.

From your vantage point today, what do you think the industry gets right — and what do you think it still struggles with?

In my opinion, the proliferation of rules, opinions, conditions and regulations have made traders shy away from LC and opt for open account options. It has become more difficult for applicants to obtain financing through LCs and harder for exporters as LC beneficiaries to know of so many things to receive payment after manufacturing and shipping goods. Due to this, SCF has gained more popularity and there’s a shift towards SCF from traditional trade financing options.

Is there a particular moment, case, deal, or decision that meaningfully shaped how you approach your work now?

Currently, I am managing Shariah-based Islamic Trade Finance. Though it complies with UCP and URC rules with certain amendments, this particular alternative finance works with underlying goods. There’s no room for unethical practices. Once goods are received, the applicant is compelled to make the payment, irrespective of discrepancies in the documents, unlike the conventional banking where buyers make use of discrepancies for huge discounts. I was involved in digitalizing the entire Islamic trade finance system, I brought down the Islamic LC issuance turnaround time (TAT) from 48 hours to 15 minutes.

What responsibility do experienced professionals have to the next generation entering trade finance and compliance?

Understand the requirements, minimize unnecessary conditions to avoid discrepancies. Discrepancies are driving away customers from LCs. Look for solutions through proper digitalization with improved TATs. Pass on our knowledge to the younger generation for future betterment.

Fun one to end: Where was your most recent vacation?

Turkey with my family.

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