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ANNOUNCED AS TEMPORARYNo
On 21 July 2016, the Saudi Fund for Development (SFD) signed two agreements with Government of the Republic of Cuba. One agreement totalling SAR 120 million (approx. USD 32 million) will finance a Cuban "Rehabilitation of Water Supply and Sanitation Systems" and the other agreement totalling SAR 187.5 million (approx. USD 50 million) will finance Saudi Arabian exports to Cuba. The agreements are funded through SFD's Saudi Export Program (SEP).
In doing so the Director General of the Saudi Export Program stated that the: "... signing of these agreements represents part of SFD's efforts to enhance the relations between Saudi Arabia and the Republic of Cuba and to promote the volume of Saudi national non-oil exports."
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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