Improving the Role of Eximbanks/ECAs in the OIC Member States
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SEP supports exporters (including SMEs) selling their products in international markets by
establishing lines of financing in favour of foreign banks, foreign financial institutions and
foreign large importing firms. SEP also offers financing facilities including pre-shipment
financing. In the insurance line, SEP provides two products that aim to reduce exporters’ risk of
non-payment due to commercial or political risk by covering 90% of said risk: Whole Turnover
and Specific Transaction.
Based on the application of specific criteria to each export transaction including a minimum 25%
Saudi domestic value added for any product and a minimum SR 100,000 value (USD 27,000) for
any transaction, SEP supports up to 100% of the value of an eligible export transaction.
As of the end of 2013, SEP had provided USD 3.2 billion in direct financings, USD 866 million in
lines of credit with several foreign banks and USD 4.6 billion in guarantees and insurance to 46
beneficiary countries.
SEP, through SFD, has forged partnerships with international and regional institutions including
JBIC, IADB, KfW, Islamic Development Bank and West African Development Bank, and engages in
technical cooperation, joint financing and reinsurance arrangements in order to improve its own
offerings to local exporters. SEP is a member of the Prague Club, the Aman Union and G-NEXID.
Analysis:
SEP offers both financing and insurance products to address the market gaps that exist. A
guiding operating principle is that, as a lender, it complements the commercial banks and does
not compete with them. As such, SEP seeks to understand the trade and finance flows, and tailors
its focus and ECA products towards facilitating Saudi non-oil exports to compete globally. Its
outward focus, as demonstrated by membership in various international fora, has been
beneficial to this end.
The Saudi program which is organized within the Saudi Development Fund and directly
controlled by the Ministry of Finance is the best capitalized ECAs in among the OIC member
states. Existing within an economic development funding agency with no relation to the
international trade business has potentially hampered its development into a full-fledged ECA.
One noticeable area of relative weakness is SEP’s credit insurance capability.
3.4.10 Sudan
National Agency for Insurance and Finance of Exports (NAIFE)
Description:
The National Agency for Insurance and Finance of Exports was established in 2005 under a
specific law with ownership comprised of entities from both the public and private sector.
NAIFE’s objective is to promote the development of Sudanese exports to help them expand into
new markets and to new buyers. NAIFE provides credit, guarantees, insurance and reinsurance
facilities as well as technical assistance through the provision of market research and
information to exporters. This is expected to increase exporters’ competitiveness in international