Saudi EXIM Bank has signed an agreement with the International Islamic Trade Finance Corporation (ITFC) to implement a $25 million financing line for Habib Bank Limited (HBL) in the Islamic Republic of Pakistan.
This move intends to develop export opportunities for the Kingdom’s Small and Medium Enterprises (SME) sector to export non-oil products to the Pakistani market.
The agreement comes within the framework of the ‘Enabling Export Activities of SMEs’ program, which aims to increase export opportunities for Saudi SMEs and attract new importers of Saudi goods in Pakistan.
The International Islamic Trade Finance Corporation (ITFC) and the Saudi EXIM Bank are working to enhance the competitiveness of Saudi non-oil exports to expand in international markets by providing credit facilities to financial institutions in the target markets.
ITFC is also cooperating with the Small and Medium Enterprises General Authority (Monsha’at) within the (program’s framework) to organize trade meetings for Saudi enterprises with potential partners in several countries and various sectors such as pharmaceuticals, food industries, and others.
This cooperation represents an important step in promoting international trade and increasing the contribution of SMEs to the GDP in line with the objectives of Saudi Vision 2030, which is one of the objectives of the ‘Enabling Export Activities of SMEs’ program.
In 2022, a tripartite MoU was signed between ITFC, Saudi EXIM Bank, and the Small and Medium Enterprises General Authority (Monsha’at) to launch the SME Export Enablement Program in Saudi Arabia.
The program aims to enhance Saudi non-oil exports by financing, training, consultations, and capability development for SMEs. Additionally, it focuses on improving the readiness of SMEs to receive financing from financial institutions with the possibility of local private banks participating in the program.