Support from Etihad Credit Insurance (ECI), the UAE’s federal export credit agency, to exporters in the non-oil trade sector jumped 128% last year to reach 11.4 billion dirhams (3.1 billion dollars) in a context of strong increase in trade.
The agency protected and facilitated the UAE’s non-oil exports to 92 countries, up from 75 in 2020, according to an annual company report. These exports covered 18 sectors, compared to 15 in 2020.
The main destination countries for UAE exports and re-exports include Saudi Arabia, Iraq, India, Oman, Kuwait and Jordan, among others, ECI said in a statement on Sunday.
“ECI has achieved record milestones in its efforts to accelerate national economic diversification and boost [the] UAE’s trade, exports and investments in the world,” said Abdulla bin Touq, Minister of Economy and Chairman of the Board, during the first meeting of the agency’s Board of Directors. to Dubai.
“Despite the significant impact of the pandemic on the global economy, ECI has remained committed to its mission to enhance the growth and competitiveness of UAE businesses by increasing its trade finance support.”
Established in 2018, ECI provides export guarantees and trade insurance to companies in the United Arab Emirates to minimize the payment risks associated with exporting.
It has partnerships with local and international banks that offer loans to UAE companies to finance exports to foreign buyers, ECI providing insurance.
The agency issued 6,620 revolving credit limits in 2021, up 229% from the 2,013 facilities it issued a year earlier, while the value of the exposure it underwrote increased by 266% to reach 5.6 billion Dh against 1.53 billion Dh in 2020. , indicates the press release.
ECI has also protected small and medium-sized enterprises (SMEs) against insolvency by recovering over MAD 85 million in non-payments over the past three years and liquidating receivables worth MAD 7.9 million, according to the press release.
“ECI will continue to prioritize its mandate to enhance national exports and create promising growth opportunities for UAE businesses,” Mr. bin Touq said.
“With strategic partnerships to support the country’s exports, trade and non-oil investments, I am confident that the ECI will continue to turn challenges into opportunities to boost the competitiveness of our national economy.”
The council approved the confirmation of Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade as vice-chairman of the council, as well as the formation of the executive committee, chaired by Saed Al Awadi, managing director of Dubai Industries and Exports, and the Audit and Risk Committee, chaired by Sameh Al Qubaisi, Director General of Economic Affairs at the Abu Dhabi Department of Economic Development.
“ECI’s success is largely due to [the] targeted implementation of its 10-year roadmap,” Mr. Al Zeyoudi said.
“By securing the liquidity of UAE companies, protecting their payments and giving them access to international markets, ECI has made a strong contribution to accelerating the UAE’s recovery during the pandemic.”
ECI management has been working to address the challenges faced by exporters, especially rising financing costs and higher rates of rejected applications, according to the statement.
The agency recorded a 510% growth in gross written premiums to MAD 109.5 million last year, compared to MAD 17.9 million in 2020.
The value of ECI’s short-term trade finance guarantees issued to banks increased from Dh680 million in 2020 to Dh1.1 billion in 2021, while the value of medium and long-term trade finance guarantees term granted to banks was recorded at 574 million Dh, according to the press release. .
Since launching its operations, ECI has supported the UAE’s non-oil gross domestic product by providing payments to UAE manufacturers and traders for 19 billion dirhams, 60% of which was provided in 2021, the agency said. society.
The main industries that benefited from the ICE are chemicals (23%), steel (21%), construction and building materials (17%), cables (15%), food ( 7%), packaging (4%). percent), electronics (4 percent), healthcare (3 percent) and printing (2 percent), he added.
ECI also plans to provide about $3 billion in guarantees to support renewable energy projects in the UAE and its developers operating overseas, said Massimo Falcioni, ECI’s chief executive. The National Last year.
The export credit agency also plans to support the Operation 300bn initiative launched by the UAE government through its offerings.
The UAE is focused on developing its local manufacturing industry to diversify its economy, create jobs, attract foreign investment, improve local skills and export locally made products. As part of its strategy to boost industrial growth, the country aims to double the contribution of the industrial sector to national economic output to Dh300 billion by 2031 from Dh133 billion currently.
Updated: April 03, 2022, 3:09 p.m.