Saudi EXIM Signs SAR50M Credit Facility with ATTM

The Saudi Export-Import Bank (Saudi EXIM), Advanced Metal Industries Cluster Co., Ltd. (AMIC), and AMIC Toho Titanium Metal Co. Ltd. (ATTM) signed a credit facility agreement worth SAR50 million in Riyadh on September 2, 2024. The agreement, announced by the Saudi Press Agency, provides working capital financing to ATTM to support its export activities, thereby boosting Saudi exports to global markets. The signing ceremony took place at the headquarters of Tasnee, a subsidiary of the National Industrialization Company, in the presence of Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb and Tasnee CEO Fawaz bin Mohammed Al-Fawaz.

Context and Background

Saudi EXIM is a development bank affiliated with the National Development Fund (NDF). It plays a pivotal role in enhancing the efficiency of the Kingdom’s export-import ecosystem, with a focus on developing non-oil exports. This aligns with Saudi Vision 2030’s objective to diversify the economy away from oil dependence. The agreement with AMIC and ATTM reflects Saudi EXIM’s commitment to fostering strategic partnerships that empower Saudi industries to compete globally.

ATTM, a joint venture between AMIC and Japan’s Toho Titanium Metal Co., specializes in producing titanium sponge, a critical raw material used in aerospace, medical implants, and other high-tech industries. The company is one of the few global producers of this strategic product, exporting to major markets such as the United States, the United Kingdom, Japan, China, and Estonia.

Key Details

The SAR50 million credit facility will provide ATTM with the necessary liquidity to expand its export operations. This financing is expected to enhance the company’s production capacity and increase the volume of Saudi titanium exports. The agreement underscores the collaboration between Saudi EXIM and the private sector to achieve the goals of Vision 2030, particularly in developing non-oil exports and fostering industrial diversification.

Eng. Saad bin Abdulaziz Al-Khalb, CEO of Saudi EXIM, emphasized the bank’s role in supporting exporters: “This agreement is part of our efforts to enable Saudi non-oil exports and strengthen the Kingdom’s position in global markets.” Fawaz bin Mohammed Al-Fawaz, CEO of Tasnee, expressed appreciation for Saudi EXIM’s support, noting that it will help ATTM meet the growing global demand for titanium sponge.

Implications and Impact

This credit facility is a significant step towards enhancing Saudi Arabia’s non-oil export sector. By supporting ATTM, Saudi EXIM is not only aiding a strategic industry but also contributing to the Kingdom’s economic diversification. The titanium sponge produced by ATTM is a high-value product, and increased exports will bolster Saudi Arabia’s trade balance and international competitiveness.

Furthermore, the agreement highlights the growing importance of Saudi-Japanese industrial collaboration. The joint venture with Toho Titanium Metal Co. brings advanced technology and expertise to the Kingdom, supporting the development of a knowledge-based economy. This partnership serves as a model for future international collaborations in high-tech industries.

Vision 2030 Alignment

This initiative is fully aligned with Saudi Vision 2030, which aims to increase non-oil exports and diversify the economy. By providing financing to strategic exporters like ATTM, Saudi EXIM is helping to achieve the Vision’s targets of boosting non-oil GDP and creating sustainable job opportunities. The agreement also reflects the Kingdom’s commitment to developing advanced industries and enhancing its global trade footprint, further solidifying Saudi Arabia’s role as a leading economy in the region and beyond.

20 Questions

Q1. What is the value of the credit facility agreement signed between Saudi EXIM, AMIC, and ATTM?

A1. The credit facility agreement is worth SAR50 million, provided by Saudi EXIM as working capital financing to support ATTM’s export activities.

Q2. Where was the agreement signed?

A2. The agreement was signed at Tasnee’s headquarters in Riyadh, Saudi Arabia, on September 2, 2024.

Q3. Who are the parties involved in the agreement?

A3. The parties are the Saudi Export-Import Bank (Saudi EXIM), Advanced Metal Industries Cluster Co., Ltd. (AMIC), and AMIC Toho Titanium Metal Co. Ltd. (ATTM).

Q4. What is the purpose of the credit facility?

A4. The facility provides working capital to ATTM to enhance liquidity for its export activities, thereby increasing Saudi exports to global markets.

Q5. What does ATTM produce?

A5. ATTM produces titanium sponge, a strategic material used in aerospace, medicine, and other vital industries.

Q6. To which countries does ATTM export titanium sponge?

A6. ATTM exports to major markets including the United States, the United Kingdom, Japan, China, and Estonia.

Q7. Who is the CEO of Saudi EXIM?

A7. Eng. Saad bin Abdulaziz Al-Khalb is the CEO of Saudi EXIM.

Q8. Who is the CEO of Tasnee?

A8. Fawaz bin Mohammed Al-Fawaz is the CEO of Tasnee.

Q9. What is Saudi EXIM’s role in the Saudi economy?

A9. Saudi EXIM is a development bank affiliated with the National Development Fund, working to enhance the export-import system and develop non-oil exports in line with Vision 2030.

Q10. How does this agreement support Vision 2030?

A10. It supports Vision 2030 by boosting non-oil exports, diversifying the economy, and enhancing Saudi Arabia’s global trade competitiveness.

Q11. What is titanium sponge used for?

A11. Titanium sponge is a key input in aerospace, medical implants, and other high-tech industries due to its strength and biocompatibility.

Q12. How many companies worldwide produce titanium sponge?

A12. Only a few companies worldwide produce titanium sponge, making ATTM a rare and strategic producer.

Q13. What is the significance of this agreement for Saudi-Japanese relations?

A13. It highlights growing industrial collaboration between Saudi Arabia and Japan, bringing advanced technology and expertise to the Kingdom.

Q14. What does AMIC stand for?

A14. AMIC stands for Advanced Metal Industries Cluster Co., Ltd., a manufacturing company within the National Industrialization Company (Tasnee).

Q15. What is the National Development Fund?

A15. The National Development Fund is a Saudi government entity that supports developmental banks and funds to achieve Vision 2030 goals.

Q16. How will the credit facility impact Saudi exports?

A16. It will increase the volume of Saudi titanium exports, improve the trade balance, and strengthen the Kingdom’s position in global markets.

Q17. What other industries rely on titanium sponge?

A17. Besides aerospace and medicine, titanium sponge is used in chemical processing, marine applications, and consumer goods.

Q18. What is the expected outcome of this agreement?

A18. The agreement is expected to enhance ATTM’s production capacity and export volume, contributing to Saudi Arabia’s non-oil export growth.

Q19. How does Saudi EXIM support other exporters?

A19. Saudi EXIM provides financing, guarantees, and insurance to Saudi exporters to help them compete internationally and expand into new markets.

Q20. What does this agreement signify for Saudi Arabia’s industrial sector?

A20. It signifies the Kingdom’s commitment to developing advanced industries and diversifying the economy away from oil, in line with Vision 2030.

Reader Feedback

We value your thoughts. Please share your feedback on this article.

Name *

Message *

Your feedback helps us improve our coverage.