The agreement covers a total value of SAR 126.75 million (approx. USD 33.8 million) in guarantees of the company's Saudi exports and is funded through SFD's Saudi Export Program (SEP). The company produces and markets chemical and petrochemicals. The SEP's export guarantee service is a insurance vehicle covering "political and commercial non-payment risks" of Saudi exports. As such the policy has a localization requirement attached. There are three different policies types. Firstly, the Whole Turnover Policy is valid for one year and covers all the policy holders export transactions with 90% of losses, due to commercial or political risks, being covered. Secondly, the Specific Transactions Policy covers one transaction and covers 90% of all losses due to commercial or political risks. This policy expires at a specified validity date. Lastly, the Cooperation Agreement with Local Banks is "an agreement concluded between the Fund and one of the local banks and it aims to enhance the L/Cs and to provide pre and post-shipment financing guarantee in addition to the cooperation in exchanging credit information." It is granted under 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. 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 (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.