Saudi Export Import Bank (Exim) has signed a MoU with Sumitomo Mitsui Banking Corporation (SMBC) to increase the provision of financial tools for both Saudi and Japanese importers and exporters.
Exim, a subsidiary of the National Development Fund, added that SMBC will get involved in joint financing and the development of trade, export and project finance transactions, provide credit lines to buyers, explore securitization or letters of credit to creditworthy Saudi exporters and Japanese importers.
It would also create “financial solutions that further facilitate export/import deals and projects pertaining to Saudi-Japanese trade”, a statement by Exim said.
SMBC added this MoU was part of the bank’s effort to be involved on a global level for Saudi exporters, increase Saudi exports through strategic partnerships with national and international financial institutions, build national lending and credit capabilities using expertise provided by the Japanese institution, and bolster Saudi EXIM’s own lending and credit assets to help national exporters.
Saad Alkhalb, Chief Executive Officer of Saudi EXIM, said of the MoU, “This should boost the competitiveness of Saudi products, increase the non-petroleum share of the gross domestic product, and create a more diverse alternative economy.”
