Saudi EXIM signs deal with InvestChile to boost trade ties, non-oil exports

RIYADH: Trade between Saudi Arabia and Chile is poised for growth with a new agreement between Saudi EXIM Bank and InvestChile that seeks to strengthen cooperation and boost non-oil exports. 

The memorandum of understanding, signed in the presence of Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and Secretary General of Foreign Affairs at the Chilean Ministry of Foreign Affairs Rodrigo Olsen, aims to enhance economic cooperation and create new investment and industrial opportunities. 

InvestChile is the government agency that promotes the South American nation as a destination for foreign direct investment. 

The partnership is set to broaden business relations, with a particular focus on enhancing Saudi non-oil exports to the South American market, according to a statement by the EXIM bank. 

The development comes as economic relations between the two countries strengthen, with trade reaching approximately $780 million in 2023. 

Chilean exports to the Kingdom totaled $570 million, while exports to Chile amounted to $210 million, according to the Saudi-Chilean Chamber of Commerce. 

During his official visit to the South American nation, Alkhorayef met with his Chilean counterpart Aurora Williams to discuss the minerals supply chain, water issues, and lithium. 

This is part of the Kingdom’s broader efforts to elevate the mining sector as a key component of its economy, with an estimated $2.5 trillion in untapped mineral resources. 

Alkhorayef also participated in a round-table meeting organized by his ministry in collaboration with the Federation of Chilean Industry, known as SOFOFA. 

The gathering, which included several heads of major Chilean companies, was attended by the EXIM Bank CEO, and the Saudi Ambassador to Chile, Khalid Alsalloom. 

During the meeting, the minister urged Chilean investors and companies to explore the unique opportunities within Saudi Arabia’s industrial and mining sectors, highlighting the capabilities and incentives the Kingdom offers to investors. 

In his speech, AlKhorayef said: “Since the launch of our mining strategy, we have observed a substantial increase in the estimated value of our mineral resources, rising from $1.3 trillion to $2.5 trillion by January of this year, marking a 90 percent increase.” 

He added this growth is attributed to investments in government geological surveys and exploration, along with contributions from the private sector. 

“We are eager to learn from Chile’s experience in developing its mining sector,” the minister concluded.