RIYADH: Saudi Arabia can soon expect better economic ties with India after their export financing institutions signed a memorandum of understanding on Monday to promote bilateral trade and support the growing private sector.
Speaking on the sidelines of the Saudi-Indian Business Forum meeting in New Delhi, Saudi EXIM Bank CEO Saad Al-Khalb said he signed a MoU with the EXIM Bank of India to improve trade relations between the two nations.
“We just signed an MoU with Indian Exim Bank for mutual collaboration and cooperation to benefit from the trade ties in Saudi Arabia and increase and support the private sector in both countries to grow even further,” Al-Khalb told Arab News.
The agreement outlined specific areas for collaboration, such as the export of goods and services, the exchange of information and support for collaborative projects.
With this arrangement, businesses in both countries could avail of export credits, pre-shipment and post-shipment financing and export guarantees for their goods and services, encouraging local companies to explore international markets and expand their customer base.
These banks could also offer insurance and guarantees to mitigate the risks involved with cross-border trade, allowing fair play in the markets.
“We have over hundreds of investors, big companies and representatives from both sides sitting together at one table. We in Saudi Arabia and our Indian counterpart are here for the development of public and private banks and to support them,” he added.
Al-Khalb described the MoU as a part of the Saudi Exim Bank’s sustained efforts to build bridges with global markets.
He explained that this new agreement cements and extends the longstanding strategic and commercial relationship between Saudi Arabia and India.
The Saudi EXIM Bank CEO was also bullish about the India-Middle East-Europe Economic Corridor that could completely change the dynamics of international trade.
“I think the announcement during the G20 on the trade line that will go from India through Saudi Arabia to Europe is a great initiative that will have a lot of positive impact on both economies,” said Al-Khalb.
The forum saw extensive bilateral dialogues involving companies and financial institutions from both countries. It highlighted investment partnerships across multiple sectors, presenting new opportunities for the private sector.
