Saudi EXIM Bank signs $26mn deal with Turkey to finance non-oil exports

By Arya M Nair, Official Reporter
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Saudi Export-Import (EXIM) Bank has signed a $26 million financing line agreement with Turkyie Finance Katilim Bank to finance Saudi non-oil exports to Turkey, which is the first direct financing agreement for Saudi non-oil exports to the Republic of Turkiye.

It also signed an agreement with the Turkish Export Bank that allows cooperation in several fields, including the exchange of experiences and the promotion of export movement between the two countries.

The two agreements were signed on the Saudi side by the CEO of the Saudi Export-Import Bank, Eng. Saad Al-Khalab, and on the Turkish side the CEO of Turkiye Finance Katilim Bank Mr. Murad Aksim, and the CEO of the Turkish Export Bank, Mr. Ali Koni.

The two agreements come within the framework of Saudi partnerships with Turkish financial institutions, and within the bank’s direction to develop its local and foreign partnerships aiming at providing sustainable financing solutions, credit and guarantee services that support the development of Saudi non-oil exports and enhance their competitiveness in global markets.

Recently, Saudi EXIM signed an MoU with the Foreign Branch of BOK International Bank (Bahrain) to explore ways to collaborate on credit solutions for non-petroleum Saudi exports.

Saudi Arabia’s exports to Turkey was $3.46 billion in 2021, according to the United Nations COMTRADE database on international trade. Turkey’s exports to Saudi Arabia jumped by 25 percent in the first quarter of 2022, amid reconciliation attempts between the two regional powers.

Turkish exports reached nearly $70 million in the first three months of this year, from an equivalent of $55 million last year. The bulk of the exports occurred in March, increasing to $58 million from $18.5 million, a 215 percent increase year-on-year.

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