AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
According to the state-owned newspaper Saudi Press Agency, the Minister of Energy, Industry and Mineral Resources of Saudi Arabia announced on 13 December 2017, that the government will establish an export bank. The total capital investment associated with the establishment of this bank is SR 30 billion (circa USD 8 billion). However, the allocated capital investment for the first fiscal year is SR 5 billion (circa USD 1.3 billion).
The main scope of this newly established institution is to encourage and support exports of Saudi exporters overseas -- with specific emphasis on Saudi exporters engaged with industrial and mining projects.
Further details concerning the operations of the denoted export bank have not yet been elaborated in official sources. Therefore, indicating that the terms under which this Bank will provide support to Saudi exporters are still not explicitly stated.
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.
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