The Saudi Fund for Development (SFD) has signed an export financing agreement with the National Bank of Iraq, a subsidiary of the Capital Bank Group, to provide credit facilities worth $10 million to Iraqi importers who seek to import Saudi products and services. The step will help strengthen trade relations between the two nations, SFD said in a statement.
The agreement was signed in Amman, Jordan, in the presence of Saudi Fund for Development CEO Sultan Abdulrahman Al-Marshad, and Basem Khalil Al-Salem, Chairman of the Board of Directors, Capital Bank, along with senior officials from both sides.
Under the agreement, SFD will provide a $10 million revolving line facility to the National Bank of Iraq to finance 100% of Saudi exports to Iraq with a repayment period of up to 36 months, depending on the type of imports and the nature of the trade transactions.
SFD CEO Sultan Abdulrahman Al-Marshad, said: “This agreement reflects the strong ties between the Kingdom and Iraq, and our mutual desire to increase cooperation across several sectors. It is part of an ongoing $1.5 billion that the Saudi government allocated to support reconstruction and development projects in Iraq.
“Supporting stability in countries seeking to achieve sustainable economic and social development is one of the main priorities of the SFD, and through this agreement, we seek to achieve prosperity for both nations. The agreement with the National Bank of Iraq is consistent with the Kingdom's aim to diversify its national economy and increase its non-oil exports, will open new markets for Saudi producers, and it will stimulate the Iraqi commercial and financial sector.”
Chairman of the Board of Directors of Capital Bank Basem Khalil Al-Salem welcomed the new trade relations. Al-Salem, said: “The role of SFD in supporting and financing development projects in Iraq reflects the historical relationship between our two nations and Saudi Arabia’s ongoing commitment to Arab economic integration throughout the region.
“This line of financing will expand trade between Iraq and Saudi Arabia by providing credit facilities for Iraqi investors to import Saudi products and services at competitive prices. It will also increase transport links between our two nations and stimulate the financial and commercial sectors.”
The agreement is the first in an ongoing program of economic regeneration between SFD and the National Bank of Iraq.--TradeArabia News Service