Saudi Exporters to Benefit from New Credit Facilities and Risk Coverage Agreements
In a groundbreaking move, Saudi exporters are poised to enjoy improved access to credit facilities and risk coverage through the recent signing of two pivotal agreements between major banks.
Boosting Non-Oil Exports
The Saudi Export-Import Bank and the Saudi National Bank have sealed a Murabaha deal and an insurance agreement, with the former focused on expanding trade opportunities and the latter providing coverage for commercial and political risks.
Aligning with Vision 2030
The ultimate goal is to elevate Saudi non-oil exports by offering a range of credit products, insurance options, and financing solutions that align with the global competitiveness objectives of Saudi Vision 2030.
Key Signings
The insurance policy agreement was signed by Mohammed bin Omar Al-Bishr, director general of the general insurance department at Saudi EXIM Bank, while Abdul Latif bin Saud Al-Ghaith, general director of the finance department at the institution, inked the Murabaha deal. Nasser Al-Fraih, SNB’s head of the group of banking and international institutions, represented the bank in signing the agreements.
Promoting Diversification and Growth
The CEO of Saudi EXIM Bank emphasized the institution’s commitment to collaborating with regional financial entities to drive diversification and strengthen the non-oil economy in line with Saudi Vision 2030. These agreements are expected to enhance the banking sector’s role in boosting Saudi exports, bridging financial gaps, and mitigating non-payment risks related to export operations.
Public and Private Sector Collaboration
Similarly, the CEO of SNB highlighted the effective partnership between the public and private sectors in fostering non-oil exports from Saudi Arabia, enhancing competitiveness, and providing credit and financing solutions to foster a sustainable economy in line with Saudi Vision 2030.
Expanding Global Reach
These agreements pave the way for potential collaborations to support Saudi exporters, enhance non-oil export activities, and create growth opportunities for businesses and services in new global markets. Earlier in April, Saudi EXIM Bank and its Swiss counterpart inked an agreement to boost the Kingdom’s non-oil exports, enhancing their competitiveness in the global market.
Global Insurance Operations
Following this deal, the Saudi lender revealed that a reinsurance agreement with the Swiss Export Credit Agency was signed in Zurich, marking a significant step in expanding global insurance operations in collaboration with leading reinsurers.