RIYADH: Saudi exporters are set to gain better access to credit facilities and risk coverage with the signing of two agreements between leading banks designed to boost non-oil exports.
The Saudi Export-Import Bank and the Saudi National Bank have agreed a Murabaha deal and an insurance agreement, with the former aimed at increasing trade, while the latter covers commercial and political risks.
The objective is to elevate Saudi non-oil exports by offering credit products, insurance, and financing solutions, aligning with the global competitiveness goals of Saudi Vision 2030.
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, signed the Murabaha deal.
Nasser Al-Fraih, SNB’s head of the group of banking and international institutions, signed the agreements on behalf of the bank.
The CEO of Saudi EXIM Bank stressed that these agreements demonstrate the bank’s dedication to collaborating with regional financial institutions to promote diversification and bolster the non-oil economy in accordance with Saudi Vision 2030.
They will also strengthen the banking industry’s contribution to boosting Saudi exports, closing financial gaps, and reducing non-payment risks associated with export operations.
Moreover, the CEO of SNB emphasized the effective collaboration between the public and private sectors in contributing to the development of non-oil exports from the Kingdom, enhancing competitiveness, and providing credit and financing solutions to establish a sustainable economy in accordance with Saudi Vision 2030.
Furthermore, these agreements open up prospects for collaboration to assist Saudi exporters, enhance non-oil export activities, and promote growth opportunities for the Kingdom’s businesses and services in new global markets.
In April, Saudi EXIM Bank and its Swiss counterpart signed an agreement to boost the Kingdom’s non-oil exports, enhancing their global market competitiveness.
In an X post following the deal, the Saudi lender stated that the reinsurance agreement with the Swiss Export Credit Agency was signed in Zurich.
This development followed Saudi EXIM’s signing of reinsurance treaties with a consortium of global reinsurers led by Swiss Re in Zurich.
These agreements were aimed at expanding global insurance operations in collaboration with the world’s largest reinsurers and providing insurance coverage to support the growth of Saudi exporters in global markets.
