The US Export-Import (Ex-Im) Bank has sanctioned a sum of US$ 4.975 billion to be provided in direct loan to aid construction of a petrochemical complex in Saudi Arabia, which is expected to support over 18,000 jobs across 13 states in the US.
According to the Ex-Im Bank President Fred Hochberg, the sum sanctioned to Sadara Chemical Company, a joint venture between Dow Chemical Co and Saudi Arabian Oil Co, is the highest amount ever approved by the bank for such a purpose.
Marking the bank's second petrochemical deal in Saudi Arabia, and the second biggest financing project entered in the Gulf region in recent times, the new complex is expected to start operations in 2016. The complex would have 26 processing units having an annual capacity of producing over three million tons of 10 key chemical products and specialty plastic categories, the bank said.
It said around 70 conglomerates including ABB Inc, Dow and KBR, along with 20 small companies are expected to supply US goods and services to east Saudi Arabia based Jubail Industrial City II, under the loan.
Andrew Liveris, Chairman and Chief Executive Officer of Dow said the bank's move would enable US producers to export goods and services to the biggest industrial complex ever constructed in a single phase.
Besides the US Ex-Im Bank, other Government export credit agencies in France, Britain, South Korea and Germany have also extended financial support for construction of the complex.
Meanwhile, the US Trade Representative's office has inked a framework agreement with Saudi Arabia and other Gulf Cooperation Council members in order to find ways to enhance mutual trade and investment.
