In a significant move aimed at bolstering small and medium-sized enterprises (SMEs), the Saudi Export-Import Bank (Saudi EXIM Bank) has forged a cooperative arrangement with the Arab National Bank (ANB). This collaboration will see the issuance of guarantees by Saudi EXIM Bank to ANB, designed to assist SMEs in securing the required financing for their export endeavors.
The partnership is a reflection of Saudi EXIM Bank’s commitment to widen its engagement with the private sector and to empower SMEs to augment their export capabilities. Moreover, it seeks to encourage the contribution of commercial banks to finance export activities, offering exporters a broader spectrum of financial solutions for their transactions.
This promising alliance was formalized through the signatures of Eng. Saad bin Abdulaziz Al-Khalb, CEO of Saudi EXIM Bank, and Obaid Alrasheed, Managing Director & CEO of ANB. According to the deal’s stipulations, Saudi EXIM Bank will provide guarantees covering up to 80% of the funding for SMEs to export Saudi products and services. These guarantees can reach a ceiling of SAR30 million for each case.
This initiative is poised to extend the reach of Saudi EXIM Bank’s support to more SMEs, bolstering their plans for export growth and easing the acquisition of necessary capital. Eng. Saad Al-Khalb expressed the significance of the agreement as a continuation of the bank’s efforts to enhance the global competitiveness of Saudi non-oil exports. He linked this strategy to the broader objectives of the Kingdom’s Vision 2030, which targets increasing non-oil exports to constitute half of the GDP by 2030, fostering a diversified and sustainable economic landscape.
Obaid Al-Rasheed underscored the importance of partnerships between the public and private sectors for the fortification and expansion of the SME sector. He highlighted the bank’s readiness to utilize its resources and expertise to propel the growth of this crucial industry segment, which is integral to diversifying the national economy and enhancing revenue streams.