A notable signing of a multi-billion US dollar letter of credit (L/C) facility helped the Saudi Export-Import Bank (Saudi EXIM) achieve a significant milestone in 2024 by more than doubling the amount of credit facilities it had ever extended in a single year.

Total facilities reached 33.53 billion Saudi Arabian riyal (SAR 33.53 billion -US$8.93 billion), marking a 103.2 per cent increase from the previous year. ​

Vision 2030

Saudi EXIM's growth aligns with Saudi Arabia's Vision 2030, aiming to diversify the economy and boost non-oil exports.

In 2024, Saudi EXIM disbursed SAR 11.96 billion in export financing, a 70 per cent rise from 2023, and provided credit insurance covering SAR 21.57 billion in exports, up 127 per cent year-on-year. ​

L/C highlight

The notable L/C signing was an insurance agreement with Saudi Basic Industries Corporation (SABIC), representing the largest ever documentary credit insurance policy in the Middle East (DC World News, 19 January 2024).

The L/C insurance policy is the newest addition to the Saudi export credit agency's range of product offerings, in the first instance enabling petrochemical giant SABIC to insure its international sales across more than 40 countries against non-payment risks posed by issuing banks. ​

Product range

Saudi EXIM's suite of products includes L/C confirmation insurance, export credit insurance, and various financing solutions such as buyer credit and pre-export finance.

These offerings are designed to mitigate risks and bridge financing gaps, thereby enhancing the competitiveness of Saudi exporters in global markets. ​

Diversification efforts

The bank's efforts have been instrumental in supporting Saudi Arabia's non-oil export growth, which has more than doubled from 2020 to 2024.

By providing comprehensive financial and insurance services, Saudi EXIM plays a crucial role in facilitating international trade and achieving the objectives of the country's Vision 2030. ​

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.