Saudi EXIM Partners With Riyad Bank To Enhance Financing For Local SMEs' Export Activities

The Saudi Export-Import Bank (Saudi EXIM) has entered into a cooperation agreement with Riyad Bank to support local small and medium-sized enterprises (SMEs) in their export activities. This partnership involves Saudi EXIM issuing bank guarantees to Riyad Bank, which will then provide financing for SMEs' export transactions. The initiative aims to enhance the export capacity of SMEs and increase the banking sector's role in export finance.

Under this agreement, Saudi EXIM will guarantee up to 80% of the financing provided to SMEs that export goods and services originating from Saudi Arabia. Each enterprise can receive guarantees of up to SAR30 million. This model is part of Saudi EXIM's strategy to foster partnerships with the private sector, thereby expanding financing options for local exporters.

The signing ceremony took place at Riyad Bank’s headquarters, where Saad bin Abdulaziz Alkhalb, CEO of Saudi EXIM, and Nadir bin Sami Al-Koraya, CEO of Riyad Bank, formalised the agreement. Alkhalb highlighted that this collaboration aligns with Saudi Vision 2030's goals by enabling SMEs to access global markets and boost their competitiveness.

Nadir bin Sami Al-Koraya expressed that through such strategic agreements, Riyad Bank aims to contribute significantly to achieving Vision 2030 targets. He noted that the bank guarantees would empower SMEs to enhance their contribution to the Gross Domestic Product (GDP) and generate more employment opportunities.

This agreement is expected to broaden the range of services offered by Saudi EXIM for SMEs, facilitating their growth in export activities. By providing necessary financing options, it will help these enterprises expand their reach in international markets.

Alkhalb stated that this initiative is crucial for enabling SME exports and enhancing their global market presence. "This agreement stems from Saudi EXIM’s role in enabling SMEs’ exports to access global markets and enhance their competitiveness in line with Saudi Vision 2030 objectives for developing the non-oil economy," he said.

Al-Koraya added that such partnerships are vital for economic growth. "Through such strategic agreements, Riyad Bank seeks to contribute effectively to achieving Vision 2030 targets," he mentioned. The collaboration is set to empower SMEs further by increasing their GDP contribution and creating more jobs.

With inputs from SPA