Riyadh: Saudi EXIM Bank announced the signing of a cooperation agreement with Arab National Bank. Under the agreement, Saudi EXIM Bank will issue guarantees in favor of the Arab National Bank 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 in financing exports' operations and provide exporters with more options for financing exports' transactions.

The agreement was signed by Eng. Saad bin Abdulaziz Al-khalb, CEO of Saudi EXIM Bank, and Obaid Alrasheed, Managing Director & CEO of ANB.

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 SAR30 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.

Obaid Al-Rasheed stressed the significance of this public-private cooperation in helping and strengthening the small and medium-sized sector, improving its competitiveness, and expanding its exports. He emphasized the bank's continuous willingness to leverage all of its strengths and expertise, as well as provide the necessary facilities, to grow this vital sector, which will help diversify the national economy and enhance income.