Saudi Exim Bank and ITFC Extend $25mn Credit Line for Saudi SMEs exporting to Pakistan

Saudi Exim Bank and the International Islamic Trade Finance Corporation (ITFC) have granted a US$25mn trade finance credit line to Bank Al Habib in Pakistan. The credit line will primarily support Saudi small and medium-sized enterprises (SMEs) that export non-oil products to Pakistan. As Saudi Exim aims to reduce the kingdom’s reliance on the oil sector and stimulate other export industries, this deal with Bank Al Habib is expected to expand the export horizons for Saudi SMEs. The collaboration is considered a significant step forward in fortifying international trade and elevating the contribution of SMEs to the gross domestic product, aligning with the goals of Saudi Arabia’s Vision 2030. The ITFC, which serves as the trade finance arm of the Islamic Development Bank, emphasizes its commitment to providing assistance to member states in the Organisation of Islamic Co-operation through direct lines of credit and indirectly through commercial banks. The credit line agreement between Saudi Exim, ITFC, and Monshaat, a Saudi authority dedicated to promoting SMEs, was signed in 2022 to pave the way for future trade finance facilities and capacity-building initiatives. Approximately 40% of Saudi Exim’s portfolio is allocated to SMEs, highlighting their importance in the bank’s overall strategy. This collaboration between Pakistan and Saudi Arabia not only strengthens bilateral trade but also facilitates the growth and diversification of Saudi exports.