On 4 April 2016, the Saudi Fund for Development (SFD), signed an export credit guarantee with the Arabian Mining Company from Saudi Arabia. The financing agreement is part of SFD's Saudi Export Program (SEP) and contains a local sourcing requirement.



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The Saudi Fund for Development, press release of 4 April 2016, SFD Signs an Export Credit Guarantee Policy with MA'ADEN Company Totaling SR187.5 Million:

The Saudi Export Program, Introduction:

The Saudi Export Program, Eligible parties for SEP benefits:

The Saudi Fund for Development, What IS SFD?:

Inception date: 04 Apr 2016 | Removal date: open ended

Trade finance

The export credit guarantee of SFD for AMC's exports has a volume of SAR 187.5 million (approx. USD 50 million) and is funded through SFD's Saudi Export Program (SEP) and will finance the company's export transactions. The company is an exporter of diammonium phosphate. In doing so the Director General of the SEP stated this will: "... contribute to the growth of national non-oil exports, noting that it will help the company and the national product to compete more effectively in the international markets. 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.


Inception date: 04 Apr 2016 | Removal date: open ended

Local sourcing

According to the terms of the SFD, the goods and services exported within this transaction must contain a Saudi domestic value of 25% or more.