Arab News, Thursday, Apr 22, 2021 | Ramadan 10, 1442
Saudi Arabia aims to help SMEs expand their export potential
Saudi Arabia:
The Saudi Export-Import (EXIM) Bank has approved nearly SR8 billion ($2.13
billion) in lending to non-oil exporters since it was launched early last year,
helping them to distribute their goods to more than 45 countries around the
world.
The lender was established as part of the government’s Vision 2030 goal to raise
the share of exports in the non-oil economy from 16 percent at present to 50
percent by the end of the decade.
“We at Saudi EXIM are mandated to serve all Saudi-based exporters of non-oil
content, be it goods, services or intermediate value-added products,
irrespective of their enterprise size. We do so by ensuring that our role
complements that of commercial lenders instead of eroding it or competing with
it,” Dr. Naif Al-Shammari, acting CEO of Saudi EXIM, said in an interview with
Arab News.
“We pay special attention to small and medium enterprises given the limited
access they have to commercial funds. This extends even to those that do not
have an export track record, provided that they have valid on-hand orders from
the export market,” Al-Shammari said.
To boost the performance of exporters in the non-oil sector, the Saudi EXIM Bank
offers 17 different credit solution products, which were developed in accordance
with best international practices and based on the needs of Saudi-based
exporters and their foreign clients, Al-Shammari said.
Meshari Alrajih, an assistant professor of marketing at the King Saud
University, said small and medium-sized exporters can benefit from the new “Made
in Saudi” program, which offers several solutions to promote the development of
local products. There are many forms of support that can be used, such as fee
exemptions for starting industrial enterprises of up to five employees, he
explained. He pointed to other programs related to Vision 2030 that can help
small and medium enterprises (SMEs), including the National Industrial
Development and Logistics Program, the Local Content and Government Procurement
Authority and the Industrial Development Fund.
To become one of the companies helping to achieve the targets set by the Vision
2030 program, Alrajih said, entrepreneurs should contact the relevant
authorities with experience in this area, such as the Saudi Exports Development
Authority and the chambers of commerce. He also recommended that small companies
participate in international exhibitions and conferences, to build up their
overseas networks.
Alrajih urges SMEs to market their products outside the Kingdom through a number
of channels such as the Ministry of Investment, which has overseas offices
specializing in helping such companies.
Design and branding consultant Fawaz Al-Otaibi said the “Made in Saudi”
initiative comes at a critical time. “During the past years, many Saudis have
received their education in the most prestigious universities in the world and
studied design, branding, industrial design and other specializations,” he said,
adding that this new skillset among young Saudis will lead to “a significant
transformation within a short period.”
As Saudi SMEs become more experienced at marketing their products to a wider
global audience, agencies such as the Saudi EXIM Bank will be on hand to help
them to finance the logistics needed to become exporters, helping the government
to achieve its ambitious Vision 2030 targets.