Howden, Allianz Trade, and Saudi EXIM bank have signed an Initial Framework Agreement to bolster Saudi Arabia’s economic growth and facilitate international trade.
As part of the initial agreement, facilitated by Howden, Allianz Trade and Saudi EXIM Bank will collaborate to provide dedicated non-payment insurance for international exporters and banks. This insurance will support the trade of non-oil products to Saudi Arabia, mitigating risks associated with financing and trade flows critical to the success of Saudi Arabia’s National Industrial Strategy.
The National Industrial Strategy aims to diversify the country’s industrial base, boost non-oil exports, promote privatisation, attract more foreign investment, foster innovation and research, and generate local employment. With ambitious targets, the strategy aims to triple manufacturing exports to $149 billion by 2030.
The London specialty market supports Saudi Arabia’s goal to become a global manufacturing hub, attracting foreign investment, diversifying the economy, and increasing non-oil government revenue to over $250 billion by 2030, marking a 500% rise.
The CEOs of the three firms signed the agreement on Wednesday 29th May, at Howden’s London office.
Eng. Saad Alkhalb, CEO of Saudi EXIM Bank, commented, “This agreement comes within the framework of the Saudi Export-Import Bank’s Bridges Initiative which aims to build and strengthen supply chain bridges between the Kingdom of Saudi Arabia and the world to facilitate the flow of goods and services at competitive cost and improve the reliability and productivity of those flows.
“The National Industrial Strategy of Saudi Arabia is a national effort led by business and supported by the government. Saudi EXIM is keen to work with external partners to unlock supply chain financing and investment from the global financial markets and enable them to capitalise on the opportunity presented by the National Industrial Strategy while benefiting from our support.
“This agreement opens supply chain bridges from over 50 countries where Allianz Trade Group has a presence to the benefit of Saudi’s growing manufacturing sector and increasing the level of attractiveness of the Kingdom of Saudi Arabia as a hub for manufacturing worldwide.”
David Howden, CEO of Howden, added, “Saudi Arabia’s 2030 vision will transform its economy by investing in new sustainable technology and infrastructure, as well as encouraging direct foreign investment. Howden is proud to support this important initiative. The unrivalled expertise of the London market has been critical in developing these ground-breaking insurance arrangements. It’s yet another demonstration of the important role that insurance plays in underwriting the global energy transition. Insurance protects economic growth, supports global trade, strengthens supply chains and is crucial in opening up opportunities to deliver a sustainable future for all.”
Marine Bochot, CEO Northern Europe of Allianz Trade, stated “As a global trade credit insurer, we are committed to supporting foreign exporters targeting growth opportunities offered by Saudi Arabia’s ambitious Vision 2030 in a targeted, diversified and sustainable economic environment. This strategic partnership will leverage our strong global network and capabilities in providing trade credit insurance across multiple export regions. We are pleased to partner with Howden and Saudi EXIM Bank to foster such growth areas, strengthen global trade and provide robust protection for supply chains.”
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