After banks from both countries agreed to provide businesses engaged in the import and export of commodities with competitive financing, bilateral trade between Saudi Arabia and Bahrain is expected to increase.
A memorandum of understanding between the National Bank of Bahrain and the Saudi Export-Import Bank, also known as the Saudi EXIM Bank, states that the NBB will provide Bahraini businesses that are importing items from Saudi Arabia with attractive financing rates.
The Saudi clients of NBB can export their goods utilising the company's guarantees, credit insurance, and other services.
“We are pleased to be signing with the National Bank of Bahrain to strengthen trade flows between Saudi Arabia and other countries,” said Saad Al-Khalb, CEO of Saudi EXIM Bank.
Al-Khalb asserts that the MoU is in line with the bank's mandate to support non-oil activities in Saudi Arabia and strengthen Saudi exporters through strategic alliances.
He added: “We are committed to the contribution to the Saudi Vision 2030 realization by investing in key partnerships to further enhance the kingdom’s presence in global markets.”
One of the key objectives of Saudi Vision 2030 is to diversify the economy of the Kingdom, which has been heavily dependent on oil for many years. It is commonly believed that one of the key strategies to accomplish this aim is to encourage the growth of non-oil exports.
“We are confident that our partnership with Saudi EXIM Bank will lay the groundwork for a fruitful collaboration between our neighboring countries,” said Mansour Alsaghayer, CEO of NBB in Saudi Arabia.
Al-Khalb stated that the bank's principal mandate is to promote the economy, flow of goods, trades, infrastructure, and long-term initiatives of the Kingdom earlier in October 2022.