By John Lee.
The Saudi EXIM Bank has announced the signing of an agreement with Iraqi Islamic Bank for Investment and Development for a new, SAR75-million [$20 million] credit line.
The new credit line is the latest addition to the broad portfolio of financial instruments that Saudi EXIM Bank provides to national financial institutions to help facilitate trade with Iraq and boost Saudi exports to the brotherly nation.
The agreement is part of Saudi EXIM Banks's efforts to facilitate investment opportunities that establish and strengthen trade relations between Saudi Arabia and neighboring countries. It is also one of several financial solutions designed to help grow non-oil Saudi exports and increase their global competitiveness.
With these objectives in focus, the agreement is designed to maximize trade between the two countries, minimize risk, and bridge gaps in funding for Saudi exports to Iraq.
The agreement was signed by H.E. Eng. Saad Alkhalb, the Chief Executive Officer of Saudi EXIM Bank, and Mr. Humam Thamer Kadhum, Managing Director of Iraqi Islamic Bank for Investment and Development. Mr. Ahmed W. Ahmed, the Iraqi bank's Chairman, and top executives from both sides were also present at the event.
"The new agreement is an extension of our strategic partnership with the Iraqi Islamic Bank for Investment and Development that is aimed at creating investment opportunities for stronger trade between our countries," said Alkhalb.
The agreement, he explained, lays the groundwork for a new credit line that helps financial institutions in both countries to fund Iraqi importers of Saudi goods at competitive rates.
He reiterated Saudi EXIM Bank's willingness to build effective partnerships that facilitate sustainable credit solutions for a dynamic, diverse economy. A key target of vision 2030 is to increase the share of non-oil exports in the Kingdom's gross domestic product from about 16 percent to at least 50 percent by 2030.
Ahmed W. Ahmed, the Chairman of Iraqi Islamic Bank for Investment and Development, said that the agreement enables new credit lines to revitalize mutual trade, empower regional financial institutions to support their respective economies, and create opportunities for imports and exports. Mutual trade has been growing thanks to the reputation for quality that Saudi products have built in Iraq.
(Source: Saudi EXIM Bank)
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