The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, the Saudi Export and Import Bank (Saudi EXIM Bank) and the General Authority for Small and Medium companies (Monshaat) announced the signing of a Tripartite Memorandum of Understanding (MoU) to launch Saudi Arabia’s SME Development Program.
Present at the signing ceremony were HE Dr. Majid bin Abdullah Al Kassabi, Minister of Trade, Chairman of the Board of Directors of the General Authority for Small and Medium Enterprises “Monshaat”, HE Mr. Bandar bin Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources, Chairman of the Board of Saudi EXIM Bank and HE Dr. Mansur Muhtar, Vice President, Country Programs of the Islamic Development Bank. The MoU was signed by Eng. Hani Salem Sonbol, CEO of ITFC; Eng. Eng. Saad bin Abdulaziz Al-Khalb, CEO of Saudi EXIM Bank; and eng. Saleh Al-Rasheed, governor of Monshaat.
Supporting the goals of Saudi Arabia’s Vision 2030, the MoU provides a cooperative framework for the development and implementation of business and SME support programs in Saudi Arabia. The SME program will be designed to increase non-oil exports through trade finance mechanisms and capacity building initiatives for companies participating in the program. In addition, the program will also seek to increase the readiness of financial institutions to finance SMEs in the Kingdom.
HE Eng. Saad Abdulaziz Al-Khalb, CEO of Saud EXIM Bank, said, “I am extremely happy to sign the MoU with ITFC and Monshaat. Diversifying the alternative economy by exporting more non-oil Saudi products is a strategic objective of Saudi Arabia’s Vision 2030. The MoU is fully aligned with Saudi EXIM Bank’s efforts to enhance cooperation with relevant government and private agencies in the Kingdom. By working closely with our partners to develop the SME program, the Bank will strengthen the support of international finance and credit institutions in the diversification of financing products and innovation in financial and credit solutions for SMEs.
Eng. Hani Salem Sonbol, CEO of ITFC commented, “ITFC places great importance on achieving the objectives of the SME Development Program and therefore we are extremely pleased to sign the MoU with our distinguished partners, Saudi EXIM Bank. and Monshaat. The program, aligned with the Kingdom’s Vision 2030, will offer significant support to SMEs, which represent enormous growth potential. As the Kingdom seeks to increase the contribution of SMEs to 35% of GDP by 2030, supporting SMEs in trade finance and trade development will be key to achieving this goal. »
The Governor of Monshaat, Eng. Saleh Al-Rasheed said, “We are honored to partner with Saudi EXIM Bank and ITFC to support the development of the Saudi SME sector. The framework of the agreement will focus on creating a growth environment for entrepreneurs and SMEs through the provision of support services and initiatives to support and facilitate business practices, increase adoption technology and innovation, while improving access to finance. »
About the International Trade Finance Corporation (ITFC)
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IDB) Group. It was established with the main objective of advancing trade among the OIC member countries, which would ultimately contribute to the overriding objective of improving the socio-economic conditions of people across the world. Commencing operations in January 2008, ITFC has provided $61 billion in financing to OIC member countries, making it the leading provider of business solutions for the needs of these member countries. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation assists entities in member countries to gain better access to trade finance and provides them with the necessary capacity building tools. trade-related capabilities, which would enable them to compete successfully. in the world market.
