Etihad Credit Insurance & Abu Dhabi Exports Office Join Forces to Expand Strategic Product Offering to Support UAE Companies through COVID-19 Economic Recovery
Abu Dhabi-UAE: 12 May, 2020 – Etihad Credit Insurance (ECI), the UAE Federal export credit company, and Abu Dhabi Exports Office (ADEX), the UAE-wide export financing entity founded by Abu Dhabi Fund for Development, announced today a strategic alliance to help UAE exporters overcome the most pressing challenges they face in the current economic climate.
ADEX and ECI will combine their highly complementary suite of financial and insurance products and services to bring to UAE businesses a full range of credit facilities – direct financing, guarantees and export credit insurance – to maximize their competitiveness in the global marketplace.
Management of both organizations, which share a mandate to drive expansion and diversification of the UAE economy by driving growth of national export companies operating outside of the crude oil sector, signed a memorandum of understanding (MoU) pledging mutual cooperation to support UAE companies by providing the full range of financial products that help them accelerate their exports beyond the border.
One of the key collaboration areas through this MOU is that ADEX will expand its range of existing buyers credit facilities in the form of loans and guarantees to include loans guaranteed by ECI to stimulate the import of made in the UAE products from foreign buyers. ECI will offer UAE exporters access to its extensive database of more than 300 million companies worldwide to establish a new customer portfolio.
In addition, the two organizations have committed to work together to develop new joint products to help UAE companies and their overseas buyers address the immediate liquidity and cash flow issues threatening the global supply chain today.
Mr. Massimo Falcioni, Chief Executive Officer of ECI, and Mr. Saeed Al Dhaheri, Acting Director General of ADEX, signed the MoU pledging their strategic collaboration. The signing ceremony was witnessed and endorsed by His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD and Chairman of the Export Executive Committee of ADEX.
Mr. Al Suwaidi said: “ECI and ADEX share a common mandate and responsibility to drive our nation’s economic development and diversification. We both have a rich suite of uniquely complementary financial and insurance products and services that are highly relevant to helping business leaders overcome the challenges they are facing in the current COVID-19 economy. United together, we can expand our reach to more effectively and efficiently provide much needed financial support to our national companies and their overseas buyers when and where they need it most.”
ECI and ADEX will partner on a national education campaign to help business leaders understand how to most effectively leverage this new combined offering to increase global competitiveness and safely enter new global markets to expand their businesses and contribute to broader UAE economy health and growth.
Mr. Falcioni said: “Together we can help enhance UAE businesses and exporters’ cash flow and safely develop business expansions. We can make sure they get paid for those transactions in advance, improving their cash flow. And we can assist them through our extensive database of companies to access new markets and reduce the cost of exports. That’s a powerful combination that will significantly help companies navigate COVID-19 related business challenges while strategically investing in long-term growth.”
Mr. Al Dhaheri said: “This is a strategic alliance that is all about protecting the best interests of our national companies as well as facilitating their overseas buyers on much-needed international trade. We offer overseas buyers of goods and services from UAE companies the benefit of immediate access to financing that is more difficult to secure locally in today’s market conditions while protecting our national companies’ transactions from risks in a time of great economic uncertainty. And together we will listen to our business leaders to explore development of new products that are directly aligned with alleviating the credit and payment pressures they are facing today.”
ECI provides guarantees and insurance solutions to mitigate the political and commercial risks arising from financing or refinancing export transactions on behalf of the UAE government. ECI has built a large ecosystem of strategic partners that includes local and international banks which can offer loans to UAE companies to fund exports to overseas buyers, with ECI providing insurance to secure that funding and protect the supply chain.
ADEX provides direct financing and credit guarantees to overseas buyers from the public and private sectors seeking to import goods and services from UAE companies. ADEX funding and guarantees are designed to support national businesses across the UAE in all non-crude oil sectors. ADEX has allocated AED 550 million ($150 million) in funding for qualifying export transactions of national companies that is immediately available to support COVID-19 economic recovery.
About Etihad Credit Insurance
Etihad Credit Insurance (PJSC) was established by UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah and Ajman. The company started its operations in February 2018. ECI plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments and strategic sectors development, in line with UAE Vision 2021 agenda.
It is tasked to accelerate and sustain national economic diversification as well as support the export and re-export of UAE goods, works, services, and the foreign investments of the UAE businesses as well as support the exporters in the domestic trade through a range of export credit, financing and investment insurance products.
To provide UAE businesses with solutions that meet their growth objectives locally and internationally, ECI builds a comprehensive platform of strategic partnerships across government, insurers, re-insurers, brokers, banks and lenders, regional and international Export Credit Agencies, governments and trade promotion agencies in addition to world organisations for economic development.
ECI has also been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings.
To find out more about support for exporters and domestic businesses, contact ECI at email@example.com
About Abu Dhabi Exports Office (ADEX)
Abu Dhabi Exports Office (ADEX) was established by Abu Dhabi Fund for Development (ADFD) to support the national economy and enhance its competitiveness through the provision of financing and guarantees to overseas buyers from the public and private sectors seeking to import goods and services from the UAE. ADEX also aspires to contribute to raising the volume of national non crude oil exports and facilitate entry into new markets. www.adfd/adex.
About Abu Dhabi Fund for Development (ADFD)
Abu Dhabi Fund for Development (ADFD) is a leading national entity for economic development aid owned by the Abu Dhabi government. Established in 1971, it aims to help emerging countries by providing concessionary loans to finance sustainable development projects as well as administering long-term investments and direct contributions. In addition to managing development grants offered by the Abu Dhabi government, ADFD has adopted a policy of supporting the national economy and financing UAE private sector investments. Since its inception, ADFD has marked developmental milestones in more than 94 developing countries. Spanning the last 48 years, the Fund’s development projects and investments, valued at AED102 billion, have helped the international community achieve sustainable economic growth as well as drive the implementation of the United Nations’ Sustainable Development Goals (SDGs).