Summary:

On 29 April 2024, the Tunisian Ministry of Economy and Planning announced that it had reached a $1.2 billion loan deal with the Saudi Arabia-based Islamic Trade Finance Corporation (IFTC) to cover raw material imports by state-owned enterprises.

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The deal was signed in Riyadh on 28 April 2024 by Tunisia’s Minister of Economy and Planning Feryel Ourghi and the CEO of the IFTC, Hani Salem Sonbol. The IFTC is part of the Islamic Development Bank, of which Tunisia is a member state. 

The loan deal is scheduled for repayment over three years and is designed to empower Tunisia’s state-owned importers to continue purchasing critical products such as fuel, flour and sugar, most of which come from outside of Tunisia

Outlook: 

After Tunisia’s low-profile participation in the World Bank and International Monetary Fund (IMF) meetings in Washington, DC, the announcement of the IFTC loan deal puts into context the lack of overt reproachment between the Tunisian delegation and IMF officials. 

With a Saudi loan deal likely under discussion, Tunisia remains positioned to continue to avoid the painful economic reform program that the IMF has outlined as a necessary part of any future loan deal.  

However, any formal or informal agreements with the Saudis were not included in the announcement of the loan deal. Prior analysis and indicators point to Saudi Arabia leveraging economic investment in other Arab states to secure cooperation on future plans to revitalize the Abraham Accords, or a similar agreement to normalize relations with Israel. 

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