RIYADH: Saudi Arabia’s non-oil trade prospects are getting better with the Saudi Export Import Bank signing an export credit insurance policy with Evonik Industries Marketing Co.
The agreement aims to protect the risk of non-payment associated with international buyers, reported the Saudi Press Agency on Wednesday.
Saudi EXIM Bank CEO Saad Al-Khalb and Evonik Industries General Manager Abdulmohsen Al-Muhaidib inked the deal at the bank’s headquarters in Riyadh.
“The collaboration is an extension of the bank’s continuous commitment to bolster the export endeavors of national institutions,” said Al-Khalb.
He added: “The agreement will enable Saudi non-oil exports to enter the world’s most competitive markets. We are pleased to cooperate with Evonik Industries to drive the growth of Saudi non-oil exports across the world markets.”
The policy paves the way for enterprises to raise their exports and enter new international markets while protecting the risk of non-payment, added Al-Muhaidib.
Additionally, it provides credit facilities for emerging sectors and enables companies to expand their customer base.
In June, the Saudi EXIM bank entered into an agreement with the National Bank of Bahrain to offer competitive financing to firms involved in importing and exporting goods.
According to a memorandum of understanding signed between the banks, NBB will offer competitive financing rates to Bahraini companies importing goods from Saudi Arabia.
NBB’s Saudi clients can also export their products using its guarantees, credit insurance and more.
At the time of the signing, Al-Khalb noted that the MoU aligns with the bank’s role of empowering Saudi exporters through strategic partnerships and bolstering non-oil activities in Saudi Arabia.
He added: “We are committed to the contribution to the Saudi Vision 2030 realization by investing in key partnerships to enhance the kingdom’s presence in global markets.”
Diversifying the Kingdom’s economy, which has been dependent on oil for several decades, is one of the crucial goals of Saudi Vision 2030, and catalyzing the growth of non-oil exports is widely considered an essential element to achieve this target.
