The Saudi EXIM Bank has signed an insurance agreement with SABIC to cover its sales on Letter of Credit basis worldwide. This strategic partnership will enable SABIC to insure their international sales across more than 40 countries against non-payment risks posed by the issuing banks. This is considered the largest insurance policy ever issued in the Middle East Region and the first of its kind to be offered directly to Saudi exporters. Furthermore, it also significantly amplifies the prospects for growth and penetration into new regional and international markets, and enhances the Saudi petrochemical exports’ competitiveness.
H.E. Eng. Saad Al-Khalab, CEO, Saudi EXIM Bank, and Salah Al-Hareky, SABIC Executive Vice President, Corporate Finance, signed the agreement.
Emphasizing the significance of the agreement H.E Eng Al-Khalab said, “This milestone agreement with SABIC aligns with the Bank's ongoing commitment to bolster the Saudi non-oil economy and enhance its contribution to the gross domestic product. The Bank focuses on encouraging companies to broaden their export operations and venture into new international markets. The Letter of Credit Insurance Policy is the newest addition to our product offerings provided to Saudi exporters, which was designed to enable SABIC realize its vision of becoming a world leader in petrochemicals and achieve more stability of cover and pricing in very critical export markets with high degree of geopolitical and economic challenges.”
Echoing similar sentiments, H.E Eng. Abdulrahman Al-Fageeh, SABIC CEO, stated, “We expect the Letter of Credit Insurance Policy provided by the Saudi EXIM Bank to play a key role in driving our export expansions. It strengthens our ambitions toward realizing our strategic objectives and multiplying our investments, considering the growth in new global markets for our products. We are committed to contributing to the objectives of Saudi Vision 2030, which focuses on augmenting the share of non-oil products in the Kingdom’s gross domestic product and promoting the "Made in Saudi" initiative.”
The Saudi EXIM Bank plays a significant role in strengthening the Saudi non-oil economy on the global stage. The Bank focuses on bridging credit gaps and mitigating the risks faced by exporters. This approach aligns with the objectives of the Kingdom’s Vision 2030, which aims to elevate the share of non-oil exports in the gross domestic product.
