Saudi EXIM Bank and ITFC Sign $5M Financing for Oman’s Alizz Islamic Bank

The Saudi Export-Import Bank (Saudi EXIM) and the International Islamic Trade Finance Corporation (ITFC) signed an implementation agreement on February 12, 2025, for a $5 million line of financing in favor of Alizz Islamic Bank in the Sultanate of Oman. The agreement was announced via the Saudi Press Agency (SPA) and forms part of the KSA SMEs Export Empowerment Program, designed to boost Saudi non-oil exports to Omani markets and support the Kingdom’s small and medium-sized enterprises (SMEs).

Context and Background

The agreement was signed by Mohammed AlAbdulmohsen, Director of the Financial Institutions Department at Saudi EXIM Bank, and Ahmed M. Yousef Jan, General Manager of the Treasury Department at ITFC, at Alizz Islamic Bank’s headquarters in Muscat, Oman. This initiative builds on the longstanding partnership between Saudi EXIM and ITFC, which have collaborated to provide credit facilities to targeted financial institutions in select countries, aiming to enhance the competitiveness of Saudi non-oil exports globally.

Key Details

The $5 million line of financing is tailored to improve access for Saudi SMEs to Omani markets, attract Omani importers, and promote export opportunities. Under the KSA SMEs Export Empowerment Program, this agreement facilitates trade finance solutions that reduce barriers for smaller exporters. Saudi EXIM’s role as a key enabler of non-oil exports aligns with national efforts to diversify the economy away from hydrocarbons.

International and Regional Impact

This collaboration underscores Saudi Arabia’s deepening economic ties with Oman, a fellow Gulf Cooperation Council (GCC) member. By supporting SMEs—which are vital for job creation and economic diversification—the agreement contributes to regional integration and trade expansion. The financing is expected to strengthen supply chains and encourage Omani businesses to source more products from Saudi Arabia, fostering mutual economic growth.

Vision 2030 Alignment

The agreement directly supports Saudi Vision 2030 by empowering SMEs to expand their global reach and increasing their contribution to the Kingdom’s gross domestic product (GDP). It represents a critical milestone in enabling Saudi non-oil exports and reinforcing the country’s presence in international markets, driving long-term economic transformation and sustainable development.

20 Questions

Q1. What is the main purpose of the agreement between Saudi EXIM and ITFC?

A1. The agreement provides a $5 million line of financing to Alizz Islamic Bank to enhance Saudi non-oil exports to Oman, supporting SMEs under the KSA SMEs Export Empowerment Program.

Q2. Which institutions are directly involved in this agreement?

A2. The Saudi Export-Import Bank (Saudi EXIM), the International Islamic Trade Finance Corporation (ITFC), and Alizz Islamic Bank in the Sultanate of Oman.

Q3. Who signed the agreement on behalf of Saudi EXIM Bank?

A3. Mohammed AlAbdulmohsen, Director of the Financial Institutions Department at Saudi EXIM Bank, signed the agreement.

Q4. Who represented ITFC during the signing ceremony?

A4. Ahmed M. Yousef Jan, General Manager of the Treasury Department at ITFC, represented the organization.

Q5. Where was the signing ceremony held?

A5. The signing took place at Alizz Islamic Bank’s headquarters in Muscat, the Sultanate of Oman.

Q6. What is the KSA SMEs Export Empowerment Program?

A6. It is a program aimed at boosting Saudi non-oil exports by providing credit facilities to financial institutions that support small and medium-sized enterprises.

Q7. How will the financing benefit Saudi SMEs?

A7. It improves their access to Omani markets, reduces trade barriers, and helps them compete internationally by securing buyer financing for Omani importers.

Q8. What is the financial value of the line of financing?

A8. The line of financing is valued at $5 million.

Q9. Which Saudi export sector is primarily targeted by this agreement?

A9. The agreement targets Saudi non-oil exports, aligning with the Kingdom’s economic diversification goals.

Q10. How does this agreement align with Saudi Vision 2030?

A10. It empowers SMEs to expand globally, increases their contribution to GDP, and supports non-oil export growth, all key Vision 2030 objectives.

Q11. What role does ITFC play in this agreement?

A11. ITFC co-implements the KSA SMEs Export Empowerment Program and provides treasury expertise to facilitate the financing line.

Q12. What is the significance of choosing Alizz Islamic Bank as the partner?

A12. Alizz Islamic Bank is a reputable Omani financial institution that can effectively channel funds to local importers, enhancing trade flows.

Q13. How will Omani importers benefit from this agreement?

A13. They gain access to competitive financing to purchase Saudi non-oil products, making Saudi exports more attractive.

Q14. Is this the first agreement between Saudi EXIM and ITFC?

A14. No, it is part of an ongoing collaboration under the KSA SMEs Export Empowerment Program, which has supported similar initiatives.

Q15. What types of products are expected to be exported under this program?

A15. The program covers a wide range of non-oil goods, including petrochemicals, plastics, construction materials, and food products.

Q16. How does this agreement strengthen Saudi-Oman economic relations?

A16. It deepens bilateral trade ties by providing financial infrastructure that facilitates cross-border commerce and mutual growth.

Q17. What is the role of Saudi EXIM Bank in the Kingdom’s economy?

A17. Saudi EXIM Bank promotes non-oil exports by providing guarantees, financing, and insurance to reduce trade risks.

Q18. When was the agreement officially signed?

A18. The agreement was signed on February 12, 2025, as announced by SPA.

Q19. Which Saudi ministry or authority announced this development?

A19. The Saudi Press Agency (SPA) released the official announcement on behalf of relevant authorities.

Q20. What is the expected impact on Saudi Arabia’s GDP?

A20. By boosting SME exports and non-oil trade, the agreement supports GDP diversification and helps achieve Vision 2030 economic targets.

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