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The Saudi Export-Import Bank signed a new framework agreement with the International Islamic Trade Finance Corporation (ITFC) to provide financing, insurance and guarantee services to the bank’s clients.
The agreement includes the provision of credit facilities including pre-export financing, import financing, buyer’s credit, supplier’s financing, and line of credit for international and local banks, it said in a statement.
CEO of the Saudi EXIM Bank, Saad Abdulaziz AlKhalb it would increase the support for Saudi exporters and international buyers of Saudi non-oil goods and services through financing and insurance products.
“In addition, the partnership will encourage Saudi and non-Saudi financial institutions to expand the provision of direct and indirect credit facilities,” he added.
Hani Salem Sonbol, CEO of ITFC, said the Kingdom’s private sector, especially SMEs, faced challenges in terms of access to financing services necessary to support their commercial and export activities.
“Through our new partnerships, we aim to support the Saudi EXIM Bank to provide them adequate and appropriate access to financing and credit facilities,” he said.
The Saudi Exim was set up last year with the mandate to promote the country’s non-oil sector exports as part of the larger objective of diversifying away from oil.
Under Saudi Vision 2030, the kingdom has set a target to increase the contribution of SMEs to the GDP from 20 percent to 35 percent. The Public Investment Fund (PIF), the country's sovereign wealth fund, has also set up a $1.07 billion "Fund of Funds" to support SMEs to provide them with access to capital
(Writing by Brinda Darasha; editing by Daniel Luiz)
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