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The next phase will witness a boom in Saudi exports in the light of establishing "Export-Import Bank"

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 The next phase will witness a boom in Saudi exports in the light of establishing "Export-Import Bank"

12/18/2017 11:00 AM

 

​Secretary-General of Saudi Export Development Authority, Eng. Saleh Al-Solami, praised private sector incentive plan which launched recently by Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, May Allah protect him, and which amounted to 72 billion SAR. In addition, he said that this plan will revive private sector's incentives, open new horizon to it and it will lead to develop the productive base and the investment environment.

Referring to the issuance of the royal decree approving private sector incentive and the approbation of a total amount of 66 million SAR to implement the initiative of launching the exports incentive program, and approving an amount of 5 billion SAR to the initiative of enhancing Saudi export finance to cover a part of Export-Import Bank capital to be established, and Saudi Export Development Authority is supposed to complete the statutory measures required to establish the bank. For his part, Al-Solami illustrated that this step is important towards the right way in activating the role of the authority, supporting the contribution in the economic growth of the Kingdom, and implementing Vision 2030, he Stressed that launching Export-Import Bank (EXIM Bank) will support national companies to enhance its exports, products and services to access to the global markets.

Al-Solami revealed that the Authority has conducted a detailed study through which a comprehensive assessment of the needs of the exporters, the current financing environment and the international standards in this regard was made, and it had been reached to the necessity and importance of an independent authority responsible for financing the exports in the Kingdom. In addition, study outcomes were presented to the National Industrial Development and Logistics Committee which recommended the establishment of independent bank to finance the exports as a quick gain of the program to motivate and support Saudi exports.

Al-Solami stressed that the establishment of the bank will enhance the competitive capacities for a several sectors of the national economy and develop its products, besides improving the business environment and investment, facilitating its implementation in the Kingdom, and promoting the developmental role of private sector in the national economy. And certainly, non-oil exports in the Kingdom need a great effort and stimulation, and this stimulation will be reflected on it as an increase of non-oil exports. So, the diversification and increase of non-oil exports is the success title of economic diversification in the country.

Al-Solami stated that Export-Import Bank (EXIM Bank) will provide four products as follows: Direct financing, Insurance, Refinancing and Guarantees, to increase the value of non-oil exports, asserting that the existence of a private bank for import and export will help drive Saudi Arabia's exports development through financing of both foreign and domestic exporters and importers, where the bank offers solutions targets all stages of the export process in order to fill gaps in the financial services provided to the import and export sector in the Kingdom. The bank will work through an independent board of directors that is organizationally linked to the National Development Fund, it is also proposed that its administrative reference will be in the improvement of the efficiency of financing services of Saudi Export Development Authority.

Furthermore, the synchronization of stimulating Saudi exports with initiatives of stimulating the private sector and the establishment of Exports Bank confirms that The Kingdom's efforts are in its right way to implement Vision 2030, and that it won't deviate from it. In addition, the plan of stimulating the private sector in general, and small, medium institutions, in particular, will benefit Saudi exports and open up new markets for it in the light of the high quality of Saudi products and its competition in the global markets.

Al-Solami stressed that the Kingdom economy has shown an exceptional and unique capacity in maintaining the state of growth, stability and the ability to confront the challenges despite the international economic developments and regional unrests, that the exports have penetrated the international markets and created its own markets in many countries of the world due to the economic policy of the Kingdom in supporting non-oil exports.

Al-Solami stated that the plan of stimulating the private sector includes economic and financial strategies distributed sectoral, that will frame the feature of the Vision and sector-specific policies for growth areas. He pointed out that applying the stimulus plan in conjunction with the reform program of economic policies, will put the Kingdom on the path to achieve sustainable growth which compounds economic growth, stressing that Saudi Export Development Authority will work to overcome barriers which face the exporters in cooperation with stakeholders. Al-Solami also stated that Export-Import Bank (EXIM Bank) will provide its financing to all manufacturers who are able to keep pace with governmental plans which aim at increasing the contribution of industrial exports in GDP of the Kingdom.

The plan of stimulating the private sector aims at promoting competitiveness of the national economy and developing its products besides improving business and investment environment, facilitating its implementation in the country, improving the confidence of the private sector in the economy and enhancing its developmental role. The plan also stresses the confidence of the Custodian of the Two Holy Mosques' government in the private sector, and expresses the government's belief in the importance of the role of the private sector as a key partner in the development.

Eng. Al-Solami also explained that the synchronization of the initiative of launching the exports stimulus program as well as the initiative of promoting Saudi export financing confirms the Kingdom's support for Saudi exports which supports the national companies to access their products to the international markets and to enhance its exports, products and services. Stressing the government's keenness to stimulate Saudi exports, which will positively affect the Kingdom's economy. He also expected that the next phase will witness a boom in Saudi exports.

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