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ANNOUNCEMENT 09 May 2011
On 9 May 2011, the Saudi Fund for Development sings an export financing agreement with Bahrain. The denoted agreement was valued at SR 143 million (circa USD 38 million).
NUMBER OF INTERVENTIONS
1
SOURCE
Saudi Fund for Development. 2011. Arabic. الصندوق السعودي للتنمية يوقع اتفاقية تمويل صادرات وطنية إلى مملكة البحرين بمبلغ (143) مليون ريال سعودي. http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2ed8086bcf/Page29.jspx?NRow=47&_afrLoop=62372104895117&wc.originURL=%2Fspaces%2Fexportprogram%2Fpage%2FLatest%2BNews%2BDetails&DFile=SEP_ACCORDION_DATAFILE&wc.contextURL=%2Fspaces%2Fexportprogram&_adf.ctrl-state=n377s0ns_1515
The Saudi Fund for Development on 9 May 2011, signed an export financing agreement with Bahrain. As per the signed agreement, the Saudi Fund for Development will provide financing for cables and other electrical products of a Saudi origin that are to be exported to Bahrain and used for the building of power transmission networks. The value of the exported financing agreement is SR 143 million (circa USD 38 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. In 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.