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Saudi Arabia Improves Imports With an $8 Bn Capital

Saudi Arabia Improves Imports With an $8 Bn Capital

Thursday, 7 February, 2019 - 14:30
Cars drive past the King Abdullah Financial District, north of Riyadh, Saudi Arabia (File Photo: Reuters)
Riyadh- Fateh al-Rahman Youssef
An independent bank with a capital of $8 billion will be set up to finance local exporters and foreign importers in line with international best practices in export finance, announced the Saudi Exports Development Authority (SEDA).

The Authority said the bank will bridge the gaps in financial services being provided to the export and import sector, adding that the bank is expected to launch its services soon.

Saudi Exports indicated that it is planning to establish 32 projects within four major initiatives as part of the National Exports Strategy.

The projects include setting up the bank, improving export environment efficiency, developing export capability for Saudi firms, promoting the initiatives of exporters and their products and finding exports opportunities for them.

The announcement came during a meeting of exporters with Secretary General of SEDA Saleh al-Sulami organized by the Industry, Energy and Mineral Resources Committee of the Riyadh Chamber of Commerce and Industry (RCCI).

The meeting discussed issues and challenges facing exporters, and promoted service packages and incentives launched by the Authority to promote exporters and their products and create opportunities in various markets.

The Authority asserted it is working on an initiative to enhance export financing within the plan to stimulate the private sector and provide financing to local exporters and international buyers until the establishment and operation of the bank.

The meeting also discussed the details of the export national strategy aiming to achieve Vision 2030 and overcome the challenges facing export development.

Secretary-General Sulami stressed that 2020 will be a prosperous year for Saudi exports.

Accounting Professor at Taif University, Salim Baajajah, indicated that it is very important to set up an export bank, because it will be a key pillar to provide the required and targeted funding. He added that this will meet the benefits of stimulating exports abroad and diversifying the economy through direct support to competent parties.

He explained to Asharq al-Awsat that the bank will enable local exporters and foreign importers to expand export financing tools and fields.

They will then be able to overcome the challenges relating to raising and developing exports, improving the export environment, developing export capabilities of small enterprises and promoting exporters' products.

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