Saudi Export-Import Bank Achieves Its First Credit Rating from Fitch
The Saudi Export-Import Bank has made significant strides in its financial credibility by receiving its inaugural credit rating from Fitch Ratings. The prestigious agency has awarded the bank a Long-Term Issuer Default Rating (IDR) of +A in both foreign and local currencies, accompanied by a Stable Outlook. Additionally, the bank has been assigned a Short-Term IDR rating of F1+.
Fitch’s decision to grant these ratings is grounded in several key factors. Notably, the bank benefits from robust ownership and support from the government, as well as oversight from the National Development Fund. This partnership underscores the bank’s essential role in executing government policies focused on financing, guaranteeing, and insuring exports.
Moreover, the ratings reflect the bank’s function as an extension of government efforts aimed at diversifying the economy and enhancing non-oil exports. This alignment bolsters confidence in the ongoing government support whenever necessary.
Saeed bin Abdulaziz Al-Khalab, the CEO of the Saudi Export-Import Bank, expressed pride in the findings of Fitch’s report, viewing them as a testament to the bank’s commitment to high standards of efficiency and transparency. This credit rating represents a pivotal step toward strengthening the bank’s presence in global markets, expanding opportunities for the growth of Saudi non-oil exports, and providing innovative and flexible solutions.
Al-Khalab emphasized that this rating better positions the bank to seize new growth opportunities, enhance the accessibility of domestic exports in international markets, and contribute more significantly to the diversification of the national economy. He stated that the Saudi Export-Import Bank is actively participating in achieving the objectives outlined in Saudi Arabia’s Vision 2030, which includes facilitating trade, promoting innovation, and enabling local companies to expand on a global scale.
Established in 2020 and functioning under the National Development Fund, the Saudi Export-Import Bank plays a crucial role in diversifying the Kingdom’s economic structure. The bank aims to boost the efficiency of exporting non-oil products and services by bridging financing gaps and mitigating export risks. This mission directly contributes to the growth of the non-oil economy in alignment with Saudi Arabia’s Vision 2030.
Through its strategic initiatives, the bank is not only enhancing the competitiveness of local businesses but also supporting the national agenda to reduce dependency on oil revenue. By facilitating access to financing for exporters, the Saudi Export-Import Bank seeks to build a resilient economic environment where non-oil exports can thrive, fostering sustainable growth and development across various sectors.
Fitch’s rating and the bank’s ongoing commitment to its mission underscore the critical importance of structured financial support in achieving national economic aspirations. As the Saudi economy seeks to pivot away from oil dependence and embrace a more diversified portfolio, the role of institutions like the Saudi Export-Import Bank will be vital in navigating this transformative journey.
In summary, the recent credit rating from Fitch represents not only a validation of the bank’s operations and governance but also highlights its strategic role within the larger framework of the Kingdom’s economic vision. By continuing to enhance its capabilities and offerings, the Saudi Export-Import Bank is poised to effectively contribute to the realization of the country’s broader economic goals, reinforcing its importance in the global export landscape.
