Small Industries Development Bank of India (SIDBI) and Monsha'at, which is SME General Authority of Saudi Arabia will jointly work on the development of MSME and related ecosystems in India and Saudi Arabia.

Assistance and expertise will be offered by SIDBI to the newly launched SME Bank in Saudi Arabia, said a press release.

The pact is a part of the strategic bilateral initiatives which will help improve diplomatic relations between both the countries.

Al-Ghunaim, CEO of SME Bank has mentioned that SIDBI's collaboration would help to achieve the mission of the SME bank to drive the business journeys of SMEs by providing diverse digital financial products.

He further informed that both organizations will explore cooperation in supporting MSMEs to expand their businesses, financial know how in the particular fields of strength, supporting the Saudi SME Bank project technically, etc.

V S V Rao, Deputy Managing Director on behalf of SIDBI said the MoU provides several opportunities of collaboration between the MSME Institutions of the two countries.

"SIDBI will be very happy to share its experience and knowledge to facilitate the growth and success of the new SME Bank of Saudi Arabia. It will also look forward this opportunity to find positive linkages for Indian MSMEs in Saudi Arabia", added Rao.

The MoU was executed during the launch event of SME Bank at Riyadh last week by Mazin Bin  Ahmed Al-Ghunaim, CEO, SME Bank and V S V Rao, Deputy Managing Director on behalf of SIDBI and Monsha'at respectively.