ECI’s support for UAE non-oil trade reaches 9.3 billion dirhams in the first 8 months of 2021.
Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and Vice Chairman of the Board of Directors of Etihad Credit Insurance (ECI), congratulated the leadership of the Federal Credit Corporation for UAE export for its substantial contributions to the UAE economy and growth. local exporters and re-exporters.
This happened during the third board meeting for 2021 at the ECI branch in Dubai, chaired by Dr Al Zeyoudi.
The Vice President also praised the organization’s outstanding business performance in the first eight months of 2021 and its strong determination to support UAE businesses and enhance their competitiveness in regional and international markets.
During the meeting, the board reviewed ECI’s performance for the first eight months of 2021, as well as other topics listed on the agenda, including a joint project that aims to position ECI as the primary gateway for exporters and re-exporters to trade credit and financial solutions provided by all participating entities including Emirates Development Bank (EDB), Abu Dhabi Exports Office (Adex), Khalifa Fund for Enterprise Development (KFED) and ECI.
The board of directors also discussed the alignment with the national target of doubling the industry’s contribution to the national gross domestic product to 300 billion Dh by 2031, against 133 billion Dh under the ‘Operation 300 billion, the promotion of the national campaign “Make it in the Emirates”, the participation of the company in Expo 2020 Dubai, as well as requesting full membership of the Berne Union .
Highlighting the outstanding performance and continued success of Etihad Credit Insurance, Al Zeyoudi said, “The UAE places the highest priority on supporting the growth of local businesses, which has a positive impact on the growth of the business. economy and employment. Etihad Credit Insurance continues to play a crucial role in this regard. ECI’s support for UAE non-oil trade reaches 9.3 billion dirhams in the first 8 months of 2021, surpassing the 5 billion dirhams of trade financial support it has provided throughout. 2020.
“It has facilitated and protected exports to 83 countries, operating in 18 sectors, surpassing the 75 countries and 15 sectors served over the whole of 2020. All of this has the effect of accelerating and supporting the economic diversification of the United Arab Emirates. . “
Al Zeyoudi also praised the on-track performance of the ECI to secure Dh10 billion of non-oil trade by the end of 2021. The ECI aims to cover by 2024 Dh27 billion of non-oil trade.
He highlighted the efforts of the ECI to protect SMEs from potential risks with “SME Protect” to help them enter high growth markets as well as the efforts of the export credit agency to consolidate the strong position of the United Arab Emirates as a world leader in the fast growing Islamic economy through “Islamic ECI”.
As of August 2021, ECI had issued 5,235 revolving credit guarantees for a total exposure amount of Dh 3.1 billion, which is equivalent to Dh 9.3 billion of insured non-oil exports, of which 45 percent are of non-oil exports from the United Arab Emirates.
The main sectors served by this state-backed support are chemicals (22 percent of total value), metal and steel (12 percent), cables (20 percent), building materials (7 percent), packaging (6 percent). percent), automobile (5 percent), utilities (5 percent), food (6 percent) and others, exporting to 83 countries, including Saudi Arabia, Iraq, Oman, India, Kuwait , Jordan, Egypt, South Africa and the UK, Hong Kong, France and many more.
In order to facilitate access and reduce the cost of bank financing for traders, ECI provided guarantees to finance UAE manufacturers for export finance (before and after shipments), discount receivables (recipient of loss / factoring) and supply finance for Dh1.1 billion, of which 87 percent (Dh960 million) has been extended to UAE exporters. ECI has also been active in supporting the financing of overseas projects, which use UAE products and services, providing guarantees for 140 million dirhams. – Wam