The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, the Saudi Export and Import Bank (Saudi EXIM Bank), and the General Authority for Small and Medium Enterprises (Monshaat) have announced the signing of a tripartite MoU to launch the KSA SME Development programme.

 

Supporting the objectives of Saudi Arabia's Vision 2030, the MoU provides a framework for cooperation on the development and implementation of programs to support enterprises and SMEs in Saudi Arabia.

 

The SME program will be designed to increase non-oil exports through trade finance facilities and capacity-building initiatives for enterprises participating in the Program. In addition, the Program will also look to increase the readiness of financial institutions to fund SMEs in the kingdom, said the statement from ITFC.

 

Present at the signing ceremony were Dr Majid bin Abdullah Al Kassabi, Minister of Commerce and Chairman of the Board of Directors of Monshaat, Bandar bin Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources and Chairman of the Board of Directors of Saudi EXIM Bank and Dr Mansur Muhtar, Vice President, Country Programs of the Islamic Development Bank.

 

The MoU was signed by Engineer Hani Salem Sonbol, the CEO of ITFC; Engineer Saad bin Abdulaziz Al-Khalb, the CEO of Saudi EXIM Bank; and Engineer Saleh Al Rasheed, Governor of Monshaat.

 

On the agreement, Al Khalb said: "I am extremely  pleased to sign the MoU with ITFC and Monshaat.  The diversification of the alternative economy through exporting more Saudi non-oil products is a strategic objective of Saudi Arabia's Vision 2030."

 

"The MoU is completely 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 increase international finance and credit institutions’ support in diversifying financing products and innovate financial and credit solutions for SMEs," he stated. 

 

Sonbol said ITFC places a high importance on meeting the SME Development Program objectives and we are therefore extremely pleased to sign the MoU with our distinguished partners, Saudi EXIM Bank and Monshaat.

 

"The Program, which is aligned with the Kingdom's Vision 2030, will offer significant support to SMEs, who represent enormous growth potential.  As the Kingdom looks to increase SME contribution to 35% of GDP by 2030, supporting SMEs in trade finance and trade development will be essential to meeting this goal," he added. 

 

Al Rasheed expressed delight at partnering with the Saudi EXIM Bank and ITFC in supporting the development of the Saudi SME sector. 

 

"The agreement framework will focus on building a growth environment for entrepreneurs and SMEs through the provision of supportive services and initiatives that aim to support and facilitate business practices, increase the adoption of technology and innovation, while improving access to finance," he added.-TradeArabia News Service