RIYADH, 15 Nov. – The ninth annual Saudi Trade Finance Summit kicked off in Riyadh on Monday with active support from the Saudi Export-Import Bank (Saudi EXIM) as a Platinum Sponsor.
Titled Resilience in Trade, Supply Chain, and Treasury Management, the two-day summit comes as part of a larger joint national effort to develop financial strategies and build effective systems to secure ample sources of financing for the trade sector. The ongoing initiative aims to bring experts and senior finance executives together to discuss ways to foster a stronger, more dynamic economy, observe changing trends in trade finance, and explore the future development of Saudi Arabia’s economy.
During a panel discussion, His Excellency Eng. Saad bin Abdulaziz Alkhalb, the Chief Executive Officer of Saudi EXIM, discussed with representatives of several government agencies ways to bolster international trade through public-private partnerships.
Eng. Alkhalb also spoke about the integral roles both sides play in achieving the objectives of purpose-oriented Saudi national strategies, such as the National Export Strategy and the National Industry Strategy, and working on ways to create new trade opportunities with international partners through trade financing and risk sharing. Eng. Alkhalb also discussed the future of digitalization within supply chains and management strategies to efficiently track major revenue sources and currency fluctuations.
Dr. Naif Alshammari, the Chief Business Officer of Saudi EXIM, reviewed the current state of the export credit market during his address, highlighting ways to bolster confidence in the growth of Saudi exports. Dr. Alshammari also spoke about facilitating access to new markets through financial support and credit insurance solutions. He pointed out the importance of encouraging financial institutions and the private sector to foster supportive measures, mitigate risks and bolster new trade relations by providing purpose-built financing solutions to Saudi exporters and foreign importers.
On the sidelines of the summit, Saudi EXIM signed a collateralized credit insurance policy worth SAR238 million ($63.5m) with the Saudi British Bank (SABB.) The policy allows SABB to approve and increase collateralized credit to Saudi exporters and broaden dealings with foreign banks that issue collateralized credit. The extra credit insurance coverage is set to help Saudi products and services gain access to new markets and expand within existing ones.
Saudi EXIM also signed credit line agreements with Jordan’s Capital Bank and the National Bank of Iraq, with a total value of $55 million to support importers of Saudi products and services to the Jordanian and Iraqi markets. The two agreements hold promising opportunities for Saudi exports based on the reputation for quality and competitiveness that Saudi non-petroleum products and services enjoy in the two countries.
These agreements come as part of a larger joint national effort to secure industrial and financial sustainability, grow the domestic business landscape, and attract investment. The national effort also seeks to create jobs and ensure logistical fluidity through uninterrupted exports. Indicators for the second quarter of 2021 show that the contribution of the non-petroleum side of the economy to the gross domestic product (GDP) had grown by 8.4 percent compared to Q2 2020.
