United Bank for Africa (UBA) Plc, and Saudi Export-Import Bank (Saudi EXIM), on Thursday, signed a Memorandum of Understanding (MoU) to foster economic cooperation and trade relations.
The MoU, which aimed at strengthening business growth and enhancing economic cooperation between both economies was signed on the sidelines of the Saudi and Arab African Summits in Saudi Arabia.
The partnership between UBA Group and Saudi EXIM Bank outlined the guiding principles for developing cooperation and relations between the two banks, primarily focused on promoting trade through the export of goods and services between the Kingdom of Saudi Arabia and the African markets.
Apart from collaborating in these areas, both institutions will also ensure sustained participation in the development of the African economy through intercontinental business relationships that will be facilitated by the new partnership.
“We are happy to join hands with Saudi EXIM Bank in a partnership that holds great promise for businesses and economies in both regions. This agreement will not only facilitate the export of goods and services but also solidify our commitment to intercontinental business relationships and contribute to the development of the African economy,” Oliver Alawuba, UBA’s chief executive officer, said in a statement.
He explained that through the partnership, both companies will identify and support joint projects and collaboration in the area of the exportation of goods and services.
“This relationship is particularly promising, considering that Saudi Arabia is deliberate in deepening economic cooperation with Africa and UBA with a presence in 20 African countries, providing the necessary vehicle for deepening this engagement,” Alawuba stated.
The UBA chief also disclosed that the partnership will help to expand the bank’s access to Asia and the Middle East, where it recently opened a subsidiary in Dubai.
“By uniting our strengths, we are setting in motion a dynamic platform that will propel the export of innovative Saudi goods and services, catalyse industrial growth and magnify our global footprint across the rich tapestry of African economies. This, we believe, will not only augment Saudi Arabia’s export diversification but also contribute significantly to the socio-economic fabric of the African nations we will serve together,” Saad Al-Khalb, CEO, Saudi EXIM Bank, stated.
The MoU will also work towards supporting joint projects and collaboration involving the export of goods and services from Saudi Arabia, and exploring opportunities to co-finance, co-insure, co-guarantee, and reinsurance projects jointly undertaken by companies from both regions.
It will also facilitate the exchange of information and know-how in the field of export credit policies and practices, the sharing of experiences and best practices, as well as provide training for each other’s staff members and staff exchanges when beneficial to both parties.
The framework for cooperation on specific joint projects will be established under separate agreements, with each party determining the terms and conditions of its support in line with its policies, procedures, and national legislation.
Also, the exchange of information will be facilitated by both institutions, while technical know-how in the field of export credit policies and practices will also be shared.