Saudi EXIM Bank and SABIC sign letter of credit insurance policy

The Saudi Export and Import Bank signed an agreement with Saudi Basic Industries Corporation. (SPA)
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Updated 17 January 2024
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Saudi EXIM Bank and SABIC sign letter of credit insurance policy

 

RIYADH: The Saudi Export and Import Bank has signed an agreement to insure Saudi Basic Industries Corporation’s sales on a letter of credit basis across 40 countries against non-payment risks posed by the issuing banks, the bank said in a statement on Tuesday.

It is considered to be the largest policy ever issued in the Middle East and the first of its kind to be offered directly to exporters to insure unconfirmed LCs from issuing banks.

It also significantly amplifies the prospects for growth and penetration into new regional and international markets and enhances the competitiveness of Saudi petrochemical exports.

CEO of Saudi EXIM Bank Saad Al-Khalab, and Salah Al-Hareky, SABIC’s executive vice president of corporate finance, signed the agreement.

Al-Khalab said: “This milestone agreement with SABIC aligns with the bank’s ongoing commitment to bolster the Saudi non-oil economy and enhance its contribution to the gross domestic product.

“The bank focuses on encouraging companies to broaden their export operations and venture into new international markets.

“The letter of credit insurance policy is the newest addition to our product offerings provided to Saudi exporters, which was designed to enable SABIC (to) realize its vision of becoming a world leader in petrochemicals and achieve more stability of cover and pricing in very critical export markets with (a) high degree of geopolitical and economic challenges.”

SABIC’s CEO Abdulrahman Al-Fageeh said: “We expect the letter of credit insurance policy provided by the Saudi EXIM Bank to play a key role in driving our export expansions as it strengthens our ambitions toward realizing our strategic objectives and multiplying our investments, considering the growth in new global markets for our products.

“We are committed to contributing to the objectives of Saudi Vision 2030, which focuses on augmenting the share of non-oil products in the Kingdom’s gross domestic product and promoting the Made in Saudi initiative.”

The Saudi EXIM Bank plays a significant role in strengthening the Kingdom’s non-oil economy on the global stage and focuses on bridging credit gaps and mitigating the risks faced by exporters. This approach aligns with the Kingdom’s Vision 2030 objectives, which aim to elevate the share of non-oil exports in GDP.


Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador

Updated 25 January 2026
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Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador

RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.

Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.

He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.

La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh. 

Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.

Launching La Fabrique as a space dedicated to artistic creativity

The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally. 

He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.

Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.

Saudi Arabia benefiting from French experience in the cultural field

Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.

This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.

He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.

La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.