IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 08 Nov 2017 | Removal date: open ended
Still in force

Trade finance

The Saudi Fund for Development on 8 November 2017, signed an export financing agreement with Turkmenistan. As per the signed agreement, the Saudi Fund for Development will provide financing for pipes as well as other products of a Saudi origin that are to be exported to Turkmenistan and used for the building of the Turkmenistan-Afghanistan- Pakistan-India (TAPI) transnational gas pipeline. The value of the exported financing agreement is SR 150 million (circa USD 40 million).

Lastly, this export financing agreement was signed and aligned with the Saudi Export Program developed by the Saudi Fund for Development.

 

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. By promoting the 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.

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 the 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.

 

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

363 Semi-manufactures of plastics
3917 Tubes, pipes and hoses, and fittings therefor (for example, joints, elbows, flanges), of plastics.
391729 Of other plastics
391731 Flexible tubes, pipes and hoses, having a minimum burst pressure of 27.6 MPa
412 Products of iron or steel
7303 Tubes, pipes and hollow profiles, of cast iron.
730300 Tubes, pipes and hollow profiles, of cast iron.
7304 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel.
730411 Of stainless steel
730419 Other

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