Saudi EXIM Bank inks agreement with ICIEC to provide credit facilities for non-oil exports

Signing Ceremony

The Saudi Export-Import Bank (EXIM Bank) signed an agreement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), to offer a special insurance product helping local banks to provide more credit facilities for the export of Saudi non-oil products, Saudi Press Agency reported.

The agreement will also boost the banks' ability to enhance the letters of credit received from foreign banks for the benefit of Saudi exporters. The agreement, which was signed by Saad Alkhalb, CEO of EXIM Bank, and Osama Al Qaisi, CEO of ICIEC, is part of the bank's continuous efforts to reduce risks and increase the exports of national products through strategic partnerships with international and local financial institutions.

Alkhalb lauded ICIEC’s role in developing the credit system in the region and the Kingdom, indicating that the bank seeks to diversify and expand its ties with financial and credit institutions locally and internationally. He confirmed that the bank will continue to conclude partnerships and agreements to back and diversify financing products as well as innovate attractive financing and credit solutions that meet the aspirations of partners and beneficiaries. In addition, such agreements will enable Saudi banks to support the export of Saudi non-oil products.

This will boost the competitiveness of the Saudi products and economic impact of non-oil exports of non-oil exports on the gross domestic product (GDP) from nearly 16% to 50% at least. It will also diversify the alternative economy as a strategic goal to support the Kingdom's Vision 2030. Saudi Arabia’s non-oil exports grew 52% year-on-year (YoY) to SAR 65.66 billion in Q2 2021, according to data from the General Authority for Statistics (GASTAT).

Non-oil exports accounted for about 27.5% of the Kingdom’s total exports during Q2 2021, amounting to SAR 238.62 billion, according to data compiled by Argaam.