Saudi Export Import Bank (Saudi Eximbank) has signed two agreements recently to improve letter of credit (L/C) access to boost Saudi exports, particularly of non-oil products.

The agreements are amongst several made recently with financial institutions worldwide by Saudi Eximbank, which underlined its aim to become more active in promoting Saudi Arabia's role in international trade by joining earlier this month the 81 member Berne Union of global export credit and investment insurance industry institutions.

ICIEC insurance agreement

Saudi Eximbank signed in September an agreement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to launch an insurance product that aims to help Saudi banks provide more credit facilities for the export of Saudi non-oil products.

The new insurance product will also enhance Saudi banks' ability to consolidate L/Cs received from foreign banks in favour of Saudi exporters.

MoU with SMBC

In October Saudi Eximbank signed a memorandum of understanding (MoU) with Sumitomo Mitsui Banking Corporation (SMBC) to increase the provision of financial tools for both Saudi and Japanese importers and exporters.

The two institutions will look at joint financing options to develop trade, export and project finance transactions and provide credit lines to buyers.

Saudi Eximbank and SMBC will also explore securitisation and L/C offerings to creditworthy Saudi exporters and Japanese importers.

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