April 2024

Riyadh, Kingdom of Saudi Arabia, 17 April 2024 - In a significant move to bolster the small and medium-sized enterprises (SMEs) sector in the Kingdom in exporting and streamline their access to global markets, Saudi Awwal Bank has collaborated with the Saudi EXIM Bank and the Kafalah Program. Through the "Guarantee Financing for Export Sector Enterprises" initiative, this aims to enhance financing options for enterprises working in the export sector and enable them to ensure sustained growth.

This collaboration will expand financing opportunities for small and medium-scale enterprises across various sectors, fostering an environment that will enable their international product exportation. This initiative marks a significant advancement in the collective efforts to propel SMEs onto the global stage, and it is also considered an initiative aiming achieve the goals of the financial sector development program in line with the Kingdom's Vision 2030.

The Saudi EXIM Bank introduced the "Export Sector Enterprises Financing Guarantees" product, specifically crafted to boost financing for small and medium enterprises engaged in international commerce, facilitating their export activities. This initiative reflects the Saudi EXIM Bank’s commitment to enhancing the operational capabilities of businesses and empowering them to play a significant role in the diversification of the national economy, the increase in non-oil GDP, and the expansion and spread of Saudi non-oil exports in global markets.

Yasser Al-Barrak, Chief Corporate and Institutional Banking Officer at SAB, commented: "This collaboration underscores our dedication to fostering the development of small and medium enterprises, particularly in international trade. Through the 'Export Sector Enterprise Financing Guarantees' product, we aim to provide specialized financing to empower these enterprises to reach new milestones on the global stage.”

He further elaborated: "Our collaboration with the Saudi EXIM Bank and the Kafalah Program aligns with our strategic goals of supporting the growth of small and medium enterprises. This enables these enterprises to navigate challenges and seize opportunities in the global market, underscoring the sector's significance in enhancing economic expansion."

This collaboration is specifically designed to offer tailored support for the "Kafala Program" beneficiaries through a unique credit track. This track aims to assist local exporters within the program by offering reduced fees compared to the standard track and expanding the coverage volume. The overarching goal is to broaden the range of support, ensuring that a more comprehensive array of local exporters in the Kingdom can leverage these benefits to extend their businesses internationally.