AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 4 April 2016, according to official announcements, the Saudi Fund for Development signed an export guarantee policy with the Saudi Arabian Mining Company (MA'ADEN) under the umbrella of its Saudi Export Program. The core scope of this credit guarantee is to cover the various export transactions of MA'ADEN. The total financial value of this export credit guarantee amounts to SR 187.5 million (circa USD 50 million).
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.
Saudi Arabian Mining Company (MA'ADEN) -- Saudi Arabian Mining Company (MA'ADEN) is a mining company owned primarily by the Saudi government (50% of its shares are owned by the government while the remaining 50% are traded in the Saudi stock exchange). This mining company primarily engages in the production of gold, phosphate, aluminium as well as other industrial minerals.
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