Saudia Group has signed a tripartite memorandum of understanding (MoU) with the Saudi Export-Import Bank and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) to explore and arrange financing solutions for the group’s acquisition of new Airbus aircraft. The agreement was signed on the sidelines of the official visit to France by His Royal Highness Crown Prince and Prime Minister Mohammed bin Salman.
The MoU was signed in Paris during the Franco-Saudi Investment Roundtable, attended by the Crown Prince and Prime Minister. The meeting aimed to strengthen economic and investment partnerships between Saudi Arabia and France and explore new opportunities for cooperation between national institutions and international financing entities.
The agreement combines international bank financing with national export-credit instruments, opening new channels for companies and projects linked to Saudi exports to access international sources of funding. It also supports the group’s plans to expand and modernize its fleet and enhance its operational capabilities in international markets.
Roles, Responsibilities
Under the MoU, Saudia will implement its investment plans to expand and modernize its fleet. Crédit Agricole, acting as the financier, will structure, arrange and provide the financing required for the aircraft purchases in line with the delivery schedules. The Saudi Export-Import Bank, acting as Saudi Arabia’s export-credit agency, will support the financing by providing insurance coverage for the credit risks associated with the transaction.
The MoU was signed by Eng. Ibrahim Al-Omar, Director General of Saudia Group; Eng. Saad Al-Khalb, Chief Executive Officer of the Saudi Export-Import Bank; and Mr. André Zervoudachi, Managing Director of Crédit Agricole Corporate and Investment Bank.
Strategic Impact
This model represents a practical application of the bank’s role in using credit insurance to facilitate Saudi companies’ access to international financing. It enhances the bankability of transactions, broadens the potential pool of international financiers, and attracts liquidity to support projects associated with the growth of non-oil exports.
The transaction also has an additional dimension because it is linked to Saudi services exports. As Saudia Group expands its fleet and operational capabilities, it will be better positioned to provide air transport services across international markets, strengthen connections between the Kingdom and destinations worldwide, accommodate growing international passenger traffic, and support the expansion of Saudi air transport services exports.
Next Steps
Under the MoU, Crédit Agricole Corporate and Investment Bank will develop the appropriate financing structure and arrange the financing in line with the expected aircraft delivery schedules. Meanwhile, the Saudi Export-Import Bank will assess and provide suitable insurance coverage for credit risks, subject to credit and insurance requirements, the completion of the necessary procedures, and agreement on the final terms of each transaction.
The parties also agreed to explore additional opportunities for cooperation in future financing transactions related to aircraft orders and fleet-development programs. This could pave the way for a long-term partnership and the repeated application of this model in future transactions.
Finally, the MoU reflects a move toward building an integrated export-financing ecosystem that combines the capacity of national institutions to assume and cover risks with the liquidity and specialized expertise provided by international financial institutions.
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