Riyadh: – The Saudi Export-Import Bank and the Sumitomo Mitsui Banking Corporation (‘SMBC’) have signed a Memorandum of Understanding (‘MoU’) that would see the Japanese banking giant cooperating with Saudi EXIM with a view to providing more financial solutions to Saudi and Japanese exporters and importers, streamlining business, and reducing risk for both sides.
This MoU is the latest in a string of global deals that Saudi EXIM is pursuing to help Saudi exports grow and become more competitive on a global level.
According to the MoU, SMBC will get involved in joint financing and development of Trade, Export and Project Finance transactions, provide credit lines to buyers, explore securitization or letters of credit to creditworthy Saudi exporters and Japanese importers, and create financial solutions that further facilitate export/import deals and projects pertaining to Saudi-Japanese trade.
Saudi EXIM’s work with SMBC is part of the bank’s effort to be involved in doing business on a global level for Saudi exporters, increase Saudi exports through strategic partnerships with national and international financial institutions, build national lending and credit capabilities using expertise provided by the Japanese institution, and bolster Saudi EXIM’s own lending and credit assets to help national exporters.
The MoU was signed by His Excellency Eng. Saad Alkhalb, Chief Executive Officer of Saudi EXIM and Mr. Keiichiro Nakamura, Chief Executive Officer, SMBC Bank International plc, Head of EMEA and Africa.
The MoU is part of Saudi EXIM’s drive for more agreements and strategic partnerships all over the world, which go hand in hand with the objectives of Vision 2030, which include boosting the global presence of Saudi products and services and creating and finding more investment opportunities.
Eng. Alkhalb, Saudi EXIM’s CEO, said that the bank is working to broaden and diversify its partnerships with national and international financial and credit houses, so as to create and provide competitive financing and credit solutions that enable other Saudi banks to fund non-petroleum exports. This, in turn, should boost the competitiveness of Saudi products, increase the non-petroleum share of the gross domestic product, and create a more diverse alternative economy as part of the Custodian of the Two Holy Mosques’ government’s efforts to empower non-petroleum exports for a more sustainable economy.
The Sumitomo Mitsui Banking Corporation offers financial products and services to a wide variety of clients, from individuals to small and medium businesses, enterprises, other financial institutions, and the Japanese government.
About Saudi EXIM
Established in 2020, Saudi EXIM aims to empower Saudi exporters, grow and diversify non-petroleum exports and bolster their global competitiveness in every sector through financing and insurance products, ultimately solidifying confidence in national products and raising the contribution of non-petroleum industries to 50 percent in 2030 from 16 percent now, which is a prime objective of Vision 2030. Saudi EXIM is a subsidiary of the National Development Fund.
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© Press Release 2021