Saudi Fund for Development Signs with National Bank of Iraq Agreement Worth USD 10 Million

The Saudi Fund for Development (SFD) has announced the signing of a finance agreement with the National Bank of Iraq (NBI), affiliated with the Capital Bank Jordan, to provide credit facilities worth USD 10 million for Iraqi investors willing to import products and services form Saudi companies, in a way that contributes to enhancing trade relations between the two countries.

The agreement was signed in Amman, Jordan, by Saudi Fund for Development (SFD) CEO Sultan bin Abdulrahman Al-Marshad and Capital Bank Chairman of the Board of Directors Bassem Khalil Al-Salem in the presence of senior officials from both sides.

Under the agreement, SFD will grant NBI a revolving line of finance worth USD10 million to import various commodities and services with a Saudi origin to clients of the bank from importing companies with a finance percentage of 100 percent of their value and with a repayment period of up to 36 months depending on the type of imports and nature of the process.

Al-Marshad said, “This agreement highlights the brotherly ties between the Kingdom of Saudi Arabia and Iraq, and reflects the two countries’ willingness to enhance cooperation in all fields,” noting that, “this deal is part of what the government of the Kingdom of Saudi Arabia has allocated to support reconstruction and development projects in Iraq with more than USD1.5 billion”.

He also stressed that supporting stability in countries seeking to realize sustainable economic and social development is a top priority for SFD, adding that the fund, through this agreement, seeks to enhance efforts that aim at achieving the principle of joint prosperity between the two sides, especially that the agreement accords with the Kingdom of Saudi Arabia’s efforts to diversify its sources of national revenues and increase the volume of non-oil exports of commodities and services of Saudi origin, where this deal is envisioned to open new markets for Saudi producers and contribute to stimulating the Iraqi commercial and financial sectors.

For his part, Al-Salem expressed appreciation for the SFD’s efforts through supporting and financing development projects in Iraq and stimulating trade ties between the two brotherly countries, noting that “the role of the fund reflects the Kingdom of Saudi Arabia’s historical endeavors and continuous support for the joint Arab action process and its contribution to realizing the Arab economic integration”.

Al-Salem also stressed that this agreement will contribute to increasing the trade exchange between Iraq and the Kingdom of Saudi Arabia through enabling NBI to offer credit facilities for importers to import Saudi products and services known for their high quality with competitive prices for the Iraqi market, noting that the agreement will also play a role in activating the transport operations between the two countries and its effective contribution to stimulating the financial and commercial sectors.