The Saudi Fund for Development (SFD) announced that it has signed a financial deal with the National Bank of Iraq (NBI), which is associated with the Capital Bank Jordan, to provide credit facilities worth $10 million to Iraqi investors who want to import goods and services from Saudi companies, thereby contributing to the improvement of bilateral trade relations.

In the participation of top officials from both sides, the deal 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.

Under the terms of the agreement, SFD will provide NBI with a $10 million revolving line of credit to purchase numerous commodities and services of Saudi origin to bank clients from importing businesses at a finance proportion of 100% of their worth and a repayment timeframe of up to 36 months, based on the type of imported goods and the nature of the procedure.

“This contract highlights the brotherly alliances between the Kingdom of Saudi Arabia and Iraq, and demonstrates the two countries' readiness to reinforce coordination throughout all fields,” Al-Marshad said, adding that “this deal is component of what the government of the Kingdom of Saudi Arabia has assigned to encourage restructuring and development projects in Iraq with more than $1.5 billion.”

He further emphasized that SFD's primary aim is to assist stability in countries aiming to achieve durable economic and social growth.

He suggested that the fund, through this contract, seeks to strengthen efforts directed at accomplishing the principle of mutual prosperity here between two sides, particularly that now the deal aligns with the Kingdom's efforts to enhance its supplies of national revenue and increase the amount of non-oil exports of Saudi-origin commodities and services.

This agreement is intended to establish new markets for Saudi products while also contributing to the growth of Iraq's financial and business industries.

Al-Salem, expressed gratitude for the SFD's endeavors in assisting and funding development projects in Iraq and encouraging trade links between the two brotherly nations, acknowledging that "the purpose of the fund reflects the Kingdom of Saudi Arabia's historical pursuits and constant encouragement for such joint Arab action procedure including its contribution to realizing the Arab economic integration”.

Al-Salem also emphasized that this deal will help to increase the exchange of trade between Iraq and the Kingdom of Saudi Arabia by allowing NBI to offer credit amenities to import Saudi goods and services known for their high quality at competitive rates for the Iraqi market, indicating that the deal will also help to stimulate the transportation activities between the two nations and their successful contribution to supporting the financial and commercial industries. The deal is the first in a series of economic regeneration initiatives between SFD and the National Bank of Iraq.