In a significant step aimed at enhancing trade relations between Saudi Arabia and Japan, the Saudi Export-Import (Saudi EXIM) Bank has entered into a Memorandum of Understanding (MOU) with the Japanese government’s Nippon Export and Investment Insurance Company (NEXI). This agreement sets a framework for cooperation to boost the export and import of goods and services between the two nations.
The MOU was formalized during a high-profile visit by Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef, to Japan. At a ceremony in Tokyo, the CEO of Saudi EXIM Bank, Eng. Saad Al-Khalb, and the Chairman and CEO of NEXI, Atsuo Kuroda, inked the agreement on December 19th.
The partnership aims to provide robust insurance solutions that will support and secure the export and import activities between the two countries. Together, Saudi EXIM Bank and NEXI will endeavor to mitigate risks inherent in cross-border transactions, such as political and commercial uncertainties. They plan to offer insurance coverage, including export credit insurance and investment insurance, to safeguard businesses against potential financial losses and facilitate smoother international trade and investment.
Eng. Al-Khalb expressed the significance of this partnership, stating that it underpins the bank’s dedication to forming strategic international alliances. The collaboration is set to enhance the reach of Saudi non-oil exports and integrate them into the global marketplace. This is in line with the ambitious national strategy for industrial development and the broader goals of Vision 2030 to diversify the Saudi economy beyond oil. Eng. Al-Khalb emphasized the focus on Japan as a key market for expanding the presence of Saudi products and services.
Playing a crucial role in the national economy, the Saudi EXIM Bank is instrumental in nurturing the growth of Saudi non-oil exports. It achieves this by providing financial solutions that bridge funding gaps and diminish export risks for Saudi enterprises. This initiative aligns with Vision 2030’s goal to elevate the share of non-oil exports in the Saudi GDP to 50% by the year 2030.