Presentation Albania 7/6/2012

Presentation
Albania 7/6/2012
2
Presentation Outline
The Saudi Fund for Development.
Saudi Oil and Non-Oil Exports.

Saudi Export Program: Establishment/Objectives.
SEP Financial Instruments: Funding/Insurance.
Co-operation with Banks/Financial Institutions.

SEP Achievements.
3
The Saudi Fund For Development
100% Government Institution
Establishment
Established in 1975
* International Development.
Objectives
* Support of Saudi Exports.
Capital (US$) About 8 Billion.
Total Assets (US$) About 35 Billion.
No. of Projects Financed 544
Total Project Financing US$ 10,32 B

Beneficiary Countries of SFD 81
Export Support (US$) About 6,400 Billion.
Beneficiary Countries of SEP 51
* Source: SFD Annual Report.
4
Saudi Exports (2007-2011)
(USD Billion)
Non Oil
Year Oil Export Total
Exports
2007 24 205 229
2008 31 281 312
2009 29 165 194
2010 33 218 251
2011 44 302 346

* Source: Central Department of Statistics & Information.
Saudi Exports During 2006 - 2010 5
(USD Million)
Description 2006 2007 2008 2009 2010
Gulf Cooperation Council 15,625 18, 965 22,065 19,078 20,521

Other Arab League Countries 11,189 12,277 17,034 11,090 13,267
Islamic not Arabic countries 10,416 11,873 14,572 8,867 12,233

105,48 161,22 138,28
Asian not Arabic ,not Islamic 0 115,348 0 104,659 2
African not Arabic, not Islamic 4,474 4,654 6,611 3,826 4,289
Australia and Oceania 628 697 863 530 504
North America 33,244 41,066 54,188 24,270 35,199
South America 2,023 2,346 3,459 1,994 2,726
Europe Countries 28,207 25,944 33,428 17,712 26,523

6
The First Five Importing
Countries
In 2010 (USD Million)
Export
Japan USA China S.Korea India
Destination
Ranking 1 2 3 4 5
Exports 36 33 29 24 19

8
What does Saudi Arabia Export?
 Crude Oil
 Other Oils (Fuel, Diesel and Gas)
 Petrochemicals
 Plastic Products
 Building Materials
 Trucks/Auto Spare Parts
 Machinery (Generators, Transformers)
 Power Towers/Cables/Accessories
 Traffic Lights/Road Accessories
 Agricultural Equipment (Irrigation Systems/Pumps)
 Steel & PVC Pipes
 Food Products/ Beverage Products/ Dairy Products
 Services, Contracting, Projects
SEP’s Objectives 9
Established in 1999 to develop and diversify Saudi

non-oil exports,
Provide competitive insurance and credit facilities to

Saudi Exporters and foreign buyers.
Motivate Saudi exporters to explore and enter new

markets by mitigating risks associated with International
trade transactions.
Maximize technical cooperation, joint financing and

reinsurance arrangements with most international and
regional banks/Institution involved in Trade Financing.
10
Basic Requirements of SEP Operations
SEP’s participation my reach up to 100% of transaction
value based on the risks involved and exposure limits.
Minimum Transaction amount: SR 100,000,
(Equivalent to about 27.000 US Dollars ).
Exports should be of Saudi origin.
Local value added should be more than 25%.

SEP does not support exports of crude oil.
SEP offersfinancial facilities in Saudi Riyals or United

States Dollars.
SEP complements commercial banks and does not
competing them.
11
Beneficiaries
Saudi exporters (Saudi companies and establishments),
Local buyers (Saudi companies and establishments)

exporting Saudi products,
Foreign Companies Manufacturing and Exporting from

Saudi Arabia,
Foreign private or public Buyers of Saudi goods and

services,
Local and Foreign Banks/Financial Institutions that

provide financing facilities for eligible Saudi exports.
12
Security / Collateral
Depending on the nature of each

export transaction and the types of
commercial & political risks involved,
SEP would seek payment securities
which it deems necessary.
13
SEP Tools
for Supporting Saudi Exports
Funding Instruments
Insurance Instruments
14
Funding Instruments of SEP
A ) Direct Funding:
(1) Supplier Credits

Supplier Credit assists Saudi exporters to provide the
required credit to the foreign importers
(2) Local Buyer Credits
SEP offers such credit facilities to Saudi businessmen
(local buyers) and investors who execute projects
outside the KSA and need financing from SEP to export
Saudi goods and services to use them in the project
implementation.
(3) Foreign Buyer (Importer) Credits
These credit facilities assist importers from outside the
KSA to obtain the required financing directly from SEP.
15
B ) Indirect Funding:
Lines of Credit for Banks,

Financial institutions,
Large Firms.
Usually provided to Commercial Banks and Financial

institutions which will be acting as agents for SEP in
the importer’s country.
Focus on SME’s as main beneficiaries.

16
Repayment periods
Short Up to 2 Consumable goods, raw

Term years materials.
Medium Up to 7 Consumable durables goods,

Term years semi capital goods.
Long Up to 15 Capital and durable goods,

Term years turnkey contracts, projects.
17
Export Credit Insurance and Guarantee

Facilities
Objectives:
To offer Guarantees for Exporters against
non-payment risk.
To offer Guarantees for commercial banks to
finance exporters.
Non-payment Risk Covered:
Commercial Risks – ( Covers up to 90%).
Political Risks - ( Covers up to 90%).
18
Types of
Export Credit Insurance Policies
(1) Whole Turn-over policy.
(2) Specific Transaction policy.
(3) Fields of Co-operation with Local Banks.

19
(1) Whole Turn-over policy
This Policy Covers all exporter’s risks
involved with registered importers in
different countries.
SEP studies and evaluates each importer
and assigns an adequate credit limit for
that importer.
Subject to the approval of SEP , Saudi
Exporters (Policy Holders) Can add other
importers to the policy during its validity.
Whole Turn-over Policy is usually short
term (about one year).
20
(2) Specific Transaction policy
This policy covers all export risks involve

in a single transaction.
Under this policy SEP could cover open

account customers or confirm
Documentary Credits.
21
(3) Fields of Co-operation with Local

Banks
A- Bank’s Acceptance to finance SEP
Insurance Policyholders (post shipment).
B- Guarantee for Financing of Working Capital
(Pre Shipment) for Exporters (Policy Holders).
C-Documentary Credit Insurance Policy (DCIP).
D-Confirming of Incoming L/C’s (Specific
Operations).
E- Exchange of Credit Information and Reports.
22
SEP's Achievements
Until May 31 , 2012
Type of SEP Facilities Value

(USD Million)
Direct Funding 1,828
Lines of Credit 522
Guarantee & Insurance 4,050
Total Facility Amount 6, 400
No. of Beneficiary Countries 51
* Source: SEP Annual Report.

www.sep.gov.sa
 +966 1 4659399- 4658117 Fax +966 1 4659699 P.O. Box 50483 Riyadh 11523

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The Saudi Fund for Development.

Saudi Oil and Non-Oil Exports.

SEP Financial Instruments: Funding/Insurance.

Co-operation with Banks/Financial Institutions.

Total Assets (US$) About 35 Billion.

No. of Projects Financed 544

Total Project Financing US$ 10,32 B

2007 24 205 229

2008 31 281 312

2009 29 165 194

2010 33 218 251

2011 44 302 346

Gulf Cooperation Council 15,625 18, 965 22,065 19,078 20,521

Islamic not Arabic countries 10,416 11,873 14,572 8,867 12,233

Europe Countries 28,207 25,944 33,428 17,712 26,523

* Source: Central Department of Statistics & Information.

Established in 1999 to develop and diversify Saudi

Provide competitive insurance and credit facilities to

Motivate Saudi exporters to explore and enter new

Maximize technical cooperation, joint financing and

Exports should be of Saudi origin.

Local value added should be more than 25%.

SEP offersfinancial facilities in Saudi Riyals or United

Local buyers (Saudi companies and establishments)

Foreign Companies Manufacturing and Exporting from

Foreign private or public Buyers of Saudi goods and

Local and Foreign Banks/Financial Institutions that

Depending on the nature of each

(1) Supplier Credits

Lines of Credit for Banks,

Usually provided to Commercial Banks and Financial

Focus on SME’s as main beneficiaries.

Short Up to 2 Consumable goods, raw

Medium Up to 7 Consumable durables goods,

Long Up to 15 Capital and durable goods,

Export Credit Insurance and Guarantee

(1) Whole Turn-over policy.

(2) Specific Transaction policy.

(3) Fields of Co-operation with Local Banks.

(2) Specific Transaction policy

This policy covers all export risks involve

Under this policy SEP could cover open

(3) Fields of Co-operation with Local

Type of SEP Facilities Value

* Source: SEP Annual Report.

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