Providing Bank Guarantees to Enable SME Exports
The Saudi Export-Import Bank (Saudi EXIM) announced the signing of a cooperation agreement with Riyad Bank, under which Saudi EXIM will issue bank guarantees in favor of Riyad Bank to provide financing to local small and medium-sized enterprises (SMEs) for their export transactions.
The agreement strengthens Saudi EXIM's partnerships with the private sector, broadens the export capacity of Saudi SMEs, and increases the contribution of the banking sector to export finance via a wider range of financing options to local exporters.
The agreement was signed in Riyad Bank by H.E. Eng. Saad bin Abdulaziz Alkhalb, CEO of Saudi EXIM, and Nadir Bin Sami Al-Koraya, CEO of Riyad Bank.
Under the agreement, Saudi EXIM will guarantee up to 80% of financing provided to SMEs exporting Saudi-origin goods and services, each enterprise being eligible for guarantees of up to SAR 30 million Saudi Riyals.
Commenting on the signing, H.E. Eng. Saad AlKhalb said:
“This agreement reflects Saudi EXIM's commitment to enabling SMEs to access global markets and enhance their competitiveness in line with the objectives of Vision 2030 to develop the Kingdom's non-oil economy. We will continue our efforts to support this vital sector, and we look forward to deepening our collaboration with Riyad Bank in the future."
Riyad Bank CEO Nadir Al-Koraya stated: “Through these strategic agreements, Riyad Bank reaffirms its commitment to advancing the objectives of Saudi Vision 2030. These bank guarantees will be a key driver in empowering SMEs to achieve the target of contributing 35% to national GDP. This partnership with Saudi EXIM will unlock new economic opportunities for SMEs and foster job creation. Riyad Bank continues to lead in enabling and financing SMEs, maintaining a leading position in both financing volume and number of enterprises supported by the Kafalah Program."
Under this agreement, many more Saudi SMEs will benefit from the support of Saudi EXIM, easing their access to secure financing and new international markets.
