Latest news with #SaudiExportImportBank
Arab News
3 days ago
- Business
- Arab News
Saudi EXIM Bank targets African markets with 4 new MoUs
RIYADH: Saudi Arabia is accelerating the expansion of its non-oil exports into African markets, with the Saudi Export-Import Bank securing four new strategic agreements to strengthen trade and investment ties across the continent. Saudi Export-Import Bank CEO Saad bin Abdulaziz Al-Khalb signed memoranda of understanding with Africa50, the Ghana Export-Import Bank, Blend International Limited, and Guinea's Ministry of Planning and International Cooperation, the Saudi Press Agency reported. The deals were finalized on the sidelines of the African Development Bank Group's annual meetings, held in Côte d'Ivoire from May 26 to 30. The newly signed deals come as Saudi exports to Africa surged 20.6 percent year on year to SR7.84 billion ($2.09 billion) in March 2025, reflecting growing trade ties between the Kingdom and the continent. Al-Khalb said the bank's participation in the meetings aims to deepen international trade relations and forge partnerships that support Saudi non-oil export growth in African markets. The SPA report added: 'He stated that the memoranda of understanding are an extension of the bank's efforts to promote trade exchange, stimulate development projects, and enable local exporters to export their services and products to African markets through effective and extended partnerships, contributing to supporting sustainable development goals and enhancing economic integration.' He also described the gathering as a valuable opportunity to boost economic cooperation and engage with officials from export credit agencies and financial institutions across African countries. The agreements were signed by Saudi EXIM CEO Saad bin Abdulaziz Al-Khalb, along with Alain Ebobisse, CEO of Africa50; Sylvester Mensah, CEO of the Ghana Export-Import Bank; Ravi Gupta, managing director of Blend International Limited; and Ismail Nabeh, minister of planning and international cooperation of Guinea. The MoU with Africa50 is aimed at enhancing cooperation in infrastructure projects by partnering with Saudi companies. The agreement with the Ghana Export-Import Bank will focus on exploring cooperation opportunities and enhancing bilateral exports of services and products. Meanwhile, the MoU with Blend International Limited is aimed at targeting broader trade opportunities and international partnerships. The deal with Guinea's Ministry of Planning and International Cooperation seeks to bolster development projects and investment in priority sectors, enabling Saudi exports of engineering services and industrial supplies. Also, on the sidelines of the event, Al-Khalb and his delegation held in-depth discussions with leaders of several international financial institutions, focusing on expanding trade ties and boosting the flow of Saudi non-oil exports into African markets.
Arab News
20-05-2025
- Business
- Arab News
Saudi EXIM Bank secures ‘A+' credit rating from Fitch, boosting non-oil export growth
RIYADH: The Saudi Export-Import Bank has received its first-ever ranking from Fitch, securing an 'A+' Long-Term Issuer Default Rating in foreign and local currencies, with a stable outlook. The agency also assigned the bank a Short-Term IDR of 'F1+, 'reflecting strong confidence in its financial stability and government-backed role. Fitch highlighted that the ratings stem from Saudi EXIM's strategic importance as a government-owned entity under the National Development Fund, as well as its key role in advancing Saudi Arabia's export financing, guarantees, and insurance policies. Saudi EXIM Bank has been actively supporting small and medium-sized enterprises to boost non-oil exports and diversify the economy under Vision 2030. Recent deals have included partnerships with the International Islamic Trade Finance Corp., Arab National Bank and Saudi Awwal Bank. Fitch noted in its assessment that 'SEB benefits from equity financing from the state, distributed promptly via NDF,' highlighting the bank's financial foundation. Saudi EXIM CEO Saad Al-Khalb expressed pride in the rating from Fitch, calling it a milestone that underscores the bank's commitment to transparency and efficiency, SPA reported. 'This classification gives the bank a greater ability to seize new growth opportunities, enhance the access of domestic exports in global markets, and contribute more deeply to the diversification of the national economy,' Al-Khalb said. In a post on X, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the bank's role in advancing the Kingdom's non-oil exports— a key pillar of Vision 2030. 'Since its inception in 2020, it has provided over SR75 billion ($19.9 billion) in credit facilities, enabling Saudi non-oil exports to access more than 150 countries worldwide,' the minister said. In 2024, Saudi Arabia's non-oil exports reached SR515 billion, marking the highest value in the Kingdom's history. This represents a 13 percent increase compared to the previous year and a 113 percent increase since the launch of Vision 2030, according to the Saudi News Agency. Fitch said that SEB has received robust financial support, including an SR12.9 billion equity injection in 2023 and an SR185 million grant in 2021. As the Kingdom's sole export credit agency, SEB is central to reducing reliance on oil by boosting non-oil exports. According to the agency, its lending portfolio surged to 58 percent of total assets in 2024, up from 47 percent the previous year. The bank also holds a substantial insurance reserve at NDF, ensuring exporters have risk coverage for global trade. Fitch assigned SEB a support score of 45 out of 60, deeming government backing 'virtually certain' if needed. The agency noted SEB's systemic importance, warning that any default would damage confidence in Saudi economic management. Fitch compared SEB to top export credit agencies like Italy's SACE and Australia's Export Finance Australia, noting their shared high-level government linkages. The rating enhances SEB's ability to attract international investors and expand its global footprint.
