SAMBA and Saudi Development Fund sign agreement to support Saudi non-oil exports
Samba Financial Group has signed a cooperation agreement with the Saudi Development Fund (SDF) through the Saudi Exports Program. Under the agreement, Samba will carry out all the banking requirements related to the financing of Saudi exports, including support for letters of credit from foreign banks in favour of Saudi exporters. In return, DSF will provide guarantees for the export of non-oil national products. The agreement was signed by Mr. Eisa Mohammad Al-Eisa, Chairman of the Board of Directors of Samba Financial Group, and Vice President and Managing Director of the Saudi Development Fund, His Excellency Engineer Yusuf Ibrahim Al-Bassam.
The Saudi Exports Program is tasked with developing and diversifying non-oil exports of the Kingdom through the provision of credit facilities and pre-shipping guarantees. This is in addition to setting up partnerships with local commercial banks to provide more export credit facilities. The Program fulfils its remit through approving participation programmes, covering risks and making arrangements for technical cooperation, joint financing and reinsurance with the regional and international authorities and institutions that provide services for export financing and guarantee. The aim is to enhance the financing of program and to limit the risks associated with loans and credit portfolio.
Commenting on the agreement, Al-Bassam said, "The cooperation agreement with Samba comes within the goals that the Fund is striving to achieve within the Saudi Exports Program. We are working in cooperation with Saudi banks to encourage and develop national exports through providing accessible credit facilities to Saudi exporters and boosting economic activities in the Kingdom." He added, "Selecting Samba is due to our great confidence in its wide-ranging and distinctive experience.
Eisa Al-Eisa said, "The signing of this agreement with Saudi Development Fund is a continuation of Samba's efforts to support and develop Saudi exports. The agreement helps clients meet their needs and leverage the Bank's vast experience in world markets, with strong links and a diverse network of financial institutions, international and local banks. The Bank's wide experience and advanced professional standards will continue to serve the national economy".
Through this agreement, Samba will provide its clients (commercial companies and exporters) with services related to foreign currency, letters of credit, payment orders and financial remittances related to exports. They can also re-issue the guarantees, such as bid and payment guarantees, Saudi exporters' services and credit assurances in this program.