Fitch Ratings confirmed the credit rating of Etihad Credit Insurance of the United Arab Emirates, citing its strong capital base with total paid-up capital of Dh250m ($ 68.07m) and additional shareholder commitment totaling 750 million Dh.
The agency rated ECI AA- with a stable outlook as the company continues to support the private sector with credit guarantees and other measures.
“This achievement is a testament to the Federal Export Credit Corporation’s commitment to constantly improve and innovate in order to help further position the country as a global trade and business hub,” said Mohammed Al Hussaini, Minister of State for Financial Affairs and President of the United Arab Emirates. of the board of directors of the ECI.
Established in 2018, ECI provides export guarantees and trade insurance to companies in the United Arab Emirates to minimize payment risks associated with exporting.
It has partnered with local and international banks that offer loans to UAE businesses to finance exports to overseas buyers, with ECI providing insurance.
The ECI issued MAD 3.4 billion of revolving credit guarantees in September 2021. The volume is three times greater than guarantees issued last year for the same period, the company said.
The credit rating “reiterates the important role of the ECI in diversifying the country’s economy and confirms the strong financial position of the federal agency and its ability to protect UAE exporters and investors in the market. international, ”said Massimo Falcioni, Director General of ECI.
ECI also plans to provide around $ 3 billion in guarantees to support renewable energy projects in the UAE and its developers operating overseas, following the country’s commitment to become climate neutral.
“The total sector will attract around $ 3 billion of investment to the UAE for renewable energy. This is what I see in the next two years,” Falcioni said. The National.
The $ 3 billion pledged over the next few years will support developments made by Masdar, as well as those of SkyPower, a large-scale solar developer.
The export credit agency also plans to support the Operation 300 billion initiative launched by the UAE government this year through its offers.
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 industrial growth strategy, the country aims to double the contribution of the industrial sector to national economic production to 300 billion Dh by 2031, against 133 billion Dh currently.
Update: October 25, 2021, 3:17 p.m.