Boosting Bilateral Trade Between Saudi Arabia and Bahrain: National Bank of Bahrain and Saudi EXIM Bank Sign MoU
Bilateral trade between Saudi Arabia and Bahrain is set to receive a further boost after banks from both sides entered into an agreement to offer competitive financing to firms involved in the import and export of goods. The National Bank of Bahrain (NBB) and the Saudi Export-Import Bank, also known as Saudi EXIM Bank, signed a memorandum of understanding that will see NBB offer competitive financing rates to Bahraini companies importing goods from Saudi Arabia. In turn, NBB’s Saudi clients can also export their products using its guarantees, credit insurance, and more.
Empowering Saudi Exporters through Strategic Partnerships
According to Saad Al-Khalb, CEO of Saudi EXIM Bank, the MoU aligns with the bank’s role of empowering Saudi exporters through strategic partnerships and bolstering non-oil activities in Saudi Arabia. He added that the bank is committed to contributing to the realization of the Saudi Vision 2030 by investing in key partnerships to further enhance the kingdom’s presence in global markets. Diversifying the Kingdom’s economy, which has been dependent on oil for several decades, is one of the crucial goals of Saudi Vision 2030, and catalyzing the growth of non-oil exports is widely considered an essential element to achieve this target.
No Saudi Cross-Border Export Fails Due to Lack of Insurance or Financing
Earlier in October 2022, Al-Khalb said that the bank’s primary mandate is to support the Kingdom’s economy, flow of goods, trades, infrastructure, and long-term projects. He also added that the bank’s main objective is to ensure that no Saudi cross-border export fails due to a lack of insurance or financing. In January 2023, the bank signed an MoU with the Italian Export Credit Agency, also known as SACE, to boost trade between the two countries. The MoU with SACE was signed to create a framework for mutual reinsurance to enhance the presence of Saudi exports in Italian markets.
Boosting Non-Oil Exports to 50% of Non-Oil GDP
EXIM Bank is one of the main pillars in supporting Saudi exports and increasing their impact on the development of the national economy, in line with the targets of the Kingdom’s Vision 2030 to increase the value of non-oil exports to 50% of the non-oil gross domestic product. The partnership between NBB and Saudi EXIM Bank is expected to lay the groundwork for a fruitful collaboration between neighboring countries, boosting bilateral trade and contributing to the realization of Saudi Vision 2030.
Conclusion
The MoU signed between NBB and Saudi EXIM Bank is a significant step towards boosting bilateral trade between Saudi Arabia and Bahrain. By offering competitive financing rates to Bahraini companies importing goods from Saudi Arabia and providing guarantees, credit insurance, and more to NBB’s Saudi clients, the partnership is expected to catalyze the growth of non-oil exports, a crucial element in achieving the targets of Saudi Vision 2030. EXIM Bank’s role in supporting Saudi exports and increasing their impact on the development of the national economy is vital, and partnerships with key players such as NBB and SACE are expected to further enhance the kingdom’s presence in global markets.