Riyadh: Saudi EXIM Bank announced its signing of a cooperation agreement with Banque Saudi Fransi. Under the agreement, Saudi EXIM Bank will issue guarantees in favor of Banque Saudi Fransi to enable Small and Medium Enterprises (SMEs) to obtain the necessary financing for export transactions.

Through this agreement, the Saudi EXIM Bank seeks to expand its partnerships with the private sector, supporting SMEs to enhance their export capacity. The agreement would also enhance the participation of commercial banks toward financing exports’ operations and provides exporters with more options of financing exports’ transactions.

The agreement was signed by Eng. Saad bin Abdulaziz Al-khalb, CEO of Saudi EXIM Bank, and Bader Hamad Al-Salloom, CEO of Banque Saudi Fransi.

According to the terms of the agreement, Saudi EXIM Bank will guarantee up to 80% of the financing for SMEs to export Saudi products and services, while the maximum limit for each guarantee could reach up to SAR 30 million. It should be noted that this agreement contributes to expanding the base of Saudi EXIM bank’s beneficiaries from SMEs segment; supporting their export expansion plans and facilitate receiving needed funds.

Commenting on this notable step, Eng. Saad Al-khalb said, "This agreement is an extension of our efforts to enhance Saudi non-oil exports and increase the competitiveness of Saudi goods and services globally. It is also in line with the bank’s strategy to strengthen the cooperation with the private sector and increase financing for SMEs by providing guarantees to commercial banks."

He added that Saudi EXIM bank will continue its endeavors to achieve the objectives of the Kingdom’s Vision 2030, which aims to boost non-oil exports to 50% of the GDP by 2030 and achieve a diversified and a sustainable national economy.

Bader Al-Salloom said, "Banque Saudi Fransi’s cooperation with the Saudi EXIM Bank strengthens our role in supporting the emerging sectors that constitute a fundamental pillar of the diversification of our national economy". He added that the agreement will contribute to increasing the national GDP, open new horizons for Saudi non-oil products and services and foster improved growth in the private sector.