AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 26 July 2015, the Saudi Fund for Development (SFD), signed a USD 30 million credit facilities agreement with CAD Middle East Pharmaceutical Industries from Saudi Arabia. The credit line is funded through SFD's Saudi Export Program (SEP) and will finance the company's exports of raw and produced pharmaceutical products to Egypt. In doing so the SEP stated in a press release that: "...this is an integration to develop the pharmaceutical industry in the Kingdom and Egypt and also to support the .health sector in Egypt by preventing hepatitis. His Excellency (i.e. H.E. the Vice-Chairman and Managing ,Director, Eng. Yousef Bin Ibrahim Al-Bassam) pointed that export agreements provided to Egypt exceeded USD 1.1 billion."
The Saudi Export Program
The Saudi Export Program (SEP) is part of the Saudi Fund for Development and was established in 1999. The program promotes Saudi exports to contribute the country's GDP and minimize the economic dependence of crude oil. In promoting export of Saudi goods the SEP can support 100% of the value of the eligible export transaction depending on risk and nature of the export. In general the value of exported good/service must contain a Saudi domestic value of 25% or more as well as the transaction having a minimum value of SAR 100,000 (approx. USD 26,666). Additionally, parties benefiting from the SEP fall into one of the following: Saudi companies and establishments; foreign companies, entities or governments importing or purchasing of Saudi goods or services; or lastly local or foreign banks and financial institutions.
According to the Saudi authorities the 'SEP has made good achievements by being able to approve export funding and guarantee facilities supporting about SAR 39 Billion (equivalent to US$ 10.4) Billion worth of exports reaching to about 68 countries. Such facilities include direct funding operations amounting to SR (12.7) Billion (ed. approx. USD 3.39 billion). In addition to that, the program has opened lines of credit with several foreign banks amounting to SR (3.5) million (ed. approx. USD 0.93 million).'
The Saudi Fund for Development
The Saudi Fund for Development (SFD) was established by Royal Decree No. M/48 of 1 September 1974. The Fund's main objectives are to: 'participate in financing of development projects in developing countries through granting of loans to said countries and to encourage national non-crude-oil exports by providing finance and insurance in support of such exports.
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