UK commodity trader DL Hudson has secured a US$50mn credit facility from Saudi Export-Import Bank (Saudi Exim) as part of the agency’s strategy to help boost Saudi Arabia’s non-oil exports.
The financing, provided through Saudi Exim’s international buyer finance product, will allow DL Hudson to buy Saudi products and “distribute them to customers” in 22 markets, according to a report by the Saudi Press Agency.
London-headquartered DL Hudson specialises in trading metals and energy. Saudi Arabia exported just over US$7bn-worth of metals in 2022, according to the Observatory of Economic Complexity.
“This agreement comes within the framework of the bank’s endeavour to provide financing solutions that contribute to the development of Saudi non-oil exports and enhance their competitiveness in global markets,” says Abdulatif Al-Ghaith, director general of Saudi Exim’s finance department.
Saudi Exim struck a US$500mn deal last year with Trafigura, also partly aimed at helping Saudi metals producers boost their exports.
The agency was established in 2020 to help pivot the Saudi economy away from reliance on the country’s vast oil reserves.
Export finance and insurance agencies in neighbouring United Arab Emirates have also provided similar financing deals with commodity traders to support non-oil export revenues.
