Statute of the Saudi Export-Import Bank
Article 1
In this Statute, the following words shall have the meanings assigned thereto, unless the context requires otherwise:
1. EXIM: Saudi Export-Import Bank.
2. Statute: Statue of the Saudi Export-Import Bank.
3. Board: EXIM’s board of directors.
4. Chairman: EXIM’s chairman.
5. Minister: Minister of Industry and Mineral Resources.
6. Executive Director: EXIM’s executive director.
7. Import: The import of goods or services to add value thereto prior to re-exportation.
8. Export: The export of goods or services produced in the Kingdom, with the exception of crude oil.
Article 2
1. Under this Statute, a bank named The Saudi Export-Import Bank shall be established and the entity to which it reports shall be determined pursuant to an order by the President of the Council of Ministers. It shall have an independent legal personality and financial and administrative independence and shall assume the powers and duties assigned thereto under this Statute.
Pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri, the first Paragraph of the second Article has been amended to be read as follows:
A bank named “The Saudi Export and Import Bank” shall be established pursuant to the Statute, shall report to the National Development Fund, have an independent legal personality and financial and administrative independence, and assume the powers and duties specified under this Statute.
2. EXIM shall be headquartered in the city of Riyadh and may, pursuant to a decision by the Board, establish branches or offices within the Kingdom and abroad.
Article 3
EXIM aims to promote and diversify Saudi exports and improve their competitiveness by providing export financing, guarantees, and export credit insurance services with competitive advantages, in order to enhance confidence in Saudi exports, enter new markets, and reduce default risks. EXIM also aims to provide import credit facilities.
Article 4
Without prejudice to the powers and duties of other government agencies, EXIM shall assume the powers and duties necessary to achieve its objectives, including the following:
Pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri, the fourth Article has been amended to be read as follows:
Without prejudice to the powers and responsibilities of the National Development Fund and other governmental entities, the Bank shall assume all the powers and duties necessary to achieve its objectives, among which are the following:
1. Providing beneficiaries with export financing, guarantees, and export credit insurance services with competitive advantages.
2. Issuing guarantees and other forms of credit facilities, provided they are covered by EXIM's capital.
3. Financing importers of raw materials, to add value thereto prior to re-exportation.
4. Cooperating and establishing partnerships with government institutions to serve EXIM's objectives.
5. Providing beneficiaries with financial, economic, and technical advice.
6. Providing best solutions and services to promote Saudi exports through partnerships with local and international public and private entities.
7. Cooperating with commercial banks and local and international financial institutions to provide integrated financial services to finance exports.
8. Reviewing export financing, guarantees, and international export credit insurance services, and keeping abreast of relevant developments as well as identifying best practices and criteria to improve EXIM’s services.
9. Holding meetings and organizing relevant symposia and work sessions.
10. Conducting relevant research and studies.
11. Contributing to the provision of relevant training to national manpower.
12. Disposing of its funds in accordance with governing rules and regulations. (The Paragraph has been added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
13. Accepting mortgages and other guarantees. (The Paragraph has been added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
14. Representing the Kingdom before relevant regional and international organizations and agencies and in relevant regional and international forums and conferences. (Added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
Article 4 (Replicate) (added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri):
The direct or indirect liabilities of bank's shall not exceed the value of its assets except in accordance with rules and regulations to be set in coordination with the National Development Fund.
Article 5
1. EXIM shall have a board of directors composed of the Minister, as chairman, and the following members: a) A representative from the Ministry of Finance.
b) A representative from the Ministry of Economy and Planning.
c) A representative from the Saudi Export Development Authority.
d) A representative from the General Authority for Foreign Trade.
e) A representative from the General Authority for Small and Medium Enterprises.
f) A representative from the Saudi Fund for Development.
g) A representative from the Saudi Industrial Development Fund.
h) A representative from the Local Content and Government Procurement Authority.
i) A representative from the National Development Fund.
The first Paragraph has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows:
1. The Bank shall have a Board of Directors headed by the Minister, along with no less than (five) members and not exceeding (seven) members, nominated by the Chairman of the Board, and appointed upon the decision of the National Development Fund’s Board Chairman.
2. Board membership shall be for a term of three years, renewable once. The rank of representatives shall not be lower than Grade 13, or its equivalent.
The second Paragraph has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows:
2. Board membership shall be for a term of three years, renewable once. The rank of representatives shall not be lower than Grade 13, or its equivalent. In the event that period expires prior to the formation or renewal of the Board, the Board shall continue to perform its duties until the issuance of a decision by the National Development Fund’s Board of Directors to that effect.
3. The Board shall, in its first meeting, elect a vice-chairman from among its members.
4. Board members shall have relevant qualifications and experience.
Article 6
The Board shall be EXIM’s highest authority. It shall oversee its management and the conduct of its affairs, and shall, subject to this Statute, assume all the powers necessary to achieve its objectives, particularly the following:
Pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri, the sixth Article was amended to be as follows:
Without prejudice to the powers and responsibilities of the National Development Fund, the Board shall be the highest authority of the EXIM. It shall oversee its management and the conduct of its affairs, and shall, subject to this Statute, assume all the powers necessary to achieve its objectives, particularly the following:
1. Approving EXIM’s general policies and plans and monitoring their implementation.
2. Determining the types of credit facilities provided by EXIM and setting their maximum limits.
3. Approving fees for services rendered by EXIM. (Paragraph (3) of the Sixth Article has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows: Approving fees for services rendered by EXIM, agreed upon with the National Development Fund.)
4. Approving financial and non-financial services provided by EXIM.
5. Approving EXIM's borrowing and other forms of indebtedness, including the issuance of sukuk and bonds, in accordance with rules set in coordination with the Ministry of Finance. (Paragraph (5) of the Sixth Article has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows: Approving EXIM's borrowing and other forms of indebtedness, including the issuance of sukuk and bonds, in accordance with rules agreed upon with the National Development Fund and National Debt Management Center.
6. Classifying beneficiaries of EXIM's services.
7. Approving EXIM's organizational structure.
8. Approving EXIM's administrative and financial regulations, in coordination with the Ministry of Finance, as well as other regulations necessary for the conduct of its affairs. (Paragraph (8) of the Sixth Article has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows: Approving EXIM's administrative and financial regulations, in agreement with the Ministry of Finance, as well as other regulations necessary for the conduct of its affairs in agreement with the National Development Fund.)
9. Approving the establishment of branches and offices for EXIM.
10. Reviewing periodic reports on EXIM’s activities submitted by the Executive Director.
11. Accepting grants, donations, gifts, bequests, and endowments in accordance with the law.
12. Appointing a certified external auditor and a comptroller.
13. Forming committees and granting them the necessary powers to carry out certain duties. (Paragraph (13) of the Sixth Article has been omitted pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri.)
14. Evaluating the performance of the executive management and taking necessary corrective measures.
15. Approving the incorporation of companies or holding a stake in existing companies. (Paragraph (15) of the Sixth Article has been omitted pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri.)
16. Approving the manner of investing EXIM's funds. (Paragraph (16) of the Article Sixth has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows:) Approving the manner of investing EXIM's funds, and submitting it to the National Development Fund’s Board for approval.
17. Adopting EXIM's performance indicators. (Paragraph (17) of the Sixth Article has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri to be as follows: Adopting of the EXIM's performance indicators, and submitting them to the National Development Fund’s Board for approval.
Approval of conducting Agreements, Protocols and Contracts in accordance with applicable regulatory procedures. (A paragraph numbered (16) has been added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
Approving the Bank's draft budget, and the final account, the external audit report and the annual report of the bank, in preparation for submitting it in accordance with the established regulation procedures. (A paragraph numbered (17) has been added pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
(A paragraph was added to the end of the Article pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
The Board, for achieving its term of reference may form permanent or ad hoc committees from among its members or others and assign them with whatever missions deems appropriate. The formation decision of each committee
shall include the appointment its chairman and members and determine its authorities. A committee may seek the assistance of non-members in the performance of its duties.
Article 7
1. The Board shall convene upon a call by the Chairman at least six times a year. The Board shall also convene if the need arises, at the Chairman's discretion, or if requested by at least half of its members. (Paragraph (1) of Article (7) has been amended pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri). The Board shall convene upon a call by the Chairman at least (four) times a year at the Chairman's discretion, or if requested by at least half of its members.
2. The call for Board meetings shall be made at least five days prior to the meeting date, provided that it includes its agenda.
3. Board meetings shall be deemed valid only if attended by the majority of its members, including the Chairman or the Vice-Chairman. Board decisions shall be passed by the majority vote of attending members. In case of a tie, the meeting chairman shall have the casting vote.
4. A Board member may not abstain from voting nor vote by proxy.
5. Board deliberations and decisions shall be entered into minutes signed by the meeting chairman and attending members.
6. The Board may, in exigent circumstances at the Chairman’s discretion, hold meetings and vote on decisions remotely. Decisions may be passed by circulation, provided that all members vote on such decisions and they are entered into the minutes of the subsequent meeting.
7. The Board may invite non-members to attend its meetings in a non-voting capacity.
8. A Board member shall not disclose any of EXIM’s confidential information.
9. Board members shall disclose any conflict of interest prior to joining the Board. The Board may delegate certain powers to its Chairman or to any of its members or EXIM’s employees.
Article 8
EXIM shall have an executive director whose appointment and dismissal shall be pursuant to a Board decision. The appointment decision shall determine his remuneration and other financial benefits. The Executive Director shall be in charge of the management of EXIM and the conduct of its affairs, and shall, subject to this Statute and Board decisions, assume all the powers and duties necessary to achieve EXIM’s objectives, particularly the following:
1. Proposing EXIM’s general policies and business plan and submitting the same to the Board for approval.
2. Proposing EXIM’s organizational structure, administrative and financial regulations, as well as other regulations necessary for the conduct of its affairs; submitting the same to the Board for approval; and monitoring the implementation thereof.
3. Supervising EXIM’s activities and the performance of its employees in accordance with EXIM's regulations and the powers vested in him.
4. Issuing EXIM’s payment orders in accordance with EXIM’s financial regulations.
5. Preparing periodic reports on EXIM’s activities, achievements, and challenges encountered and submitting the same to the Board for necessary action.
6. Signing agreements and contracts upon Board approval, or in accordance with the powers granted thereto by the Board.
7. Appointing EXIM’s employees and terminating their services, in accordance with relevant laws and regulations and the powers vested in him.
8. Contracting with experts, specialists, and consultants with relevant experience.
9. Submitting to the Board proposals and recommendations on matters falling within his powers.
10. Proposing additional services and the fees thereof, and submitting the same to the Board for approval.
11. Setting indicators to measure EXIM's performance, and submitting the same to the Board for approval.
12. Representing EXIM before the judiciary, government agencies, and relevant entities within the Kingdom and abroad; he may delegate such power to any person he deems fit.
13. Exercising any other power granted to him by the Board.
The Executive Director may delegate certain powers to any of EXIM’s employees.
Article 9
1. EXIM’s financial resources shall be as follows:
a) Fees for services rendered by EXIM.
b) Gifts, donations, endowments, and bequests accepted by the Board, in accordance with the law.
c) Returns on its investments.
d) Sukuk and bonds issued by EXIM.
e) Cash and in-kind contributions provided by the State.
f) Any other resources approved by the Board, provided they are not inconsistent with the laws and instructions.
2. EXIM's funds shall be deposited into the Ministry of Finance’s current account with the Saudi Arabian Monetary Authority. Disbursement from such account shall be made in accordance with EXIM's approved budget. (Paragraph (2) has been deleted pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri).
3. EXIM shall open an account with the Saudi Arabian Monetary Authority, and it may open other accounts with any of the banks licensed to operate in the Kingdom. Disbursement from such accounts shall be made in accordance with EXIM’s budget.
Article 10
Without prejudice to the jurisdiction of the General Court of Audit, the Board shall appoint and determine the fees of an external auditor, or more, with a natural or legal personality licensed to practice in the Kingdom to audit EXIM’s accounts, transactions, annual budget, and final accounts. The auditor’s report shall be submitted to the Board, and a copy thereof shall be provided to the General Court of Audit.
Article 11
The Board shall submit to the agency to which it reports an annual report on EXIM’s activities and accounts audited by certified public accountants for completion of statutory procedures.
(Pursuant to the Royal Decree No. (508), dated 04/09/1443 Hijri, Article (11) has been amended to be as follows: The Board shall submit to the National Development Fund an annual report on EXIM’s activities and accounts (according to the periods determined by the National Development Fund) certified by an external auditor for completion of statutory procedures.
Article 12
EXIM’s employees shall be subject to the Labor Law and the Social Insurance Law.
Article 13
EXIM’s fiscal year shall be the same as the State’s fiscal year. As an exception, EXIM’s first fiscal year shall commence on the date this Statute enters into force and end on the date the State’s following fiscal year ends.
Article 14
This Statute shall be published in the Official Gazette and shall enter into force on the date of its publication.
Disclaimer: The English version is an unofficial translation of the original in Arabic and for information purposes only.
