Etihad Credit Insurance (ECI), the UAE’s federal export credit company, recorded an 8 per cent annual increase in its credit coverage within the emirate of Abu Dhabi, reaching a total of AED1.4 billion ($381.2 million) in the first eight months of 2024.
The financial services industry continues to lead in securing ECI’s credit support in Abu Dhabi, accounting for 50.6 per cent of the total coverage. This was followed by the F&B sector, metals, paper manufacturing, packaging, and electronics and cables industries, accounting for 14 per cent, 10.5 per cent, 10.4 per cent, 6.6 per cent, and 2.6 per cent, respectively. During this period, ECI also witnessed a 24 per cent rise in the issuance of insurance documents within the emirate.
Total coverage surges
In this year alone, the company has attained total credit coverage worth AED10.6 billion in the UAE, expanding at a growth rate of 10 per cent annually, with a 16 per cent increase in insurance document issuance. Additionally, the financial services sector topped the list of industries benefiting from ECI’s nationwide coverage, accounting for 21.36 per cent, followed by logistics, reinsurance, information and communications technology (ICT), chemicals, and food and beverages industries, constituting 14.63 per cent, 10.65 per cent, 10.01 per cent, 7.78 per cent, and 7.45 per cent, respectively.
“Despite the challenges in some global markets, the foreign trade of the emirate of Abu Dhabi has succeeded in continuing the growth, leveraging the momentum in the country’s non-oil foreign trade of both goods and services. As a result, in 2023, the Abu Dhabi foreign trade sector achieved an exemplary valuation of AED3.5 trillion.” Said Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology and the ECI’s board member.
Al Suwaidi highlighted that the rapid growth can be attributed to several factors, such as strategic initiatives aimed at boosting non-oil sectors, with a focus on driving industrial growth.
“Such initiatives align with goals outlined in the strategy of the Ministry of Industry and Advanced Technology (MoIAT) and its vision to empower Emirati industries, enhancing their competitiveness and ability to export, while establishing an integrated industrial system. Furthermore, the ‘Make it in the Emirates’ initiative plays a crucial role in driving industrial growth and empowerment by promoting local products and embracing digital transformation as well as innovations of the Fourth Industrial Revolution. The MoIAT will continue to collaborate with partners in both public and private sectors to empower the domestic industrial sector and enhance its contribution to the nation’s Gross Domestic Product (GDP). We are also committed to achieving self-sufficiency in manufacturing, driving sustainable knowledge-based economic growth, and enhancing the competitiveness of Emirati products in global markets,” he added.
Boost for non-oil foreign trade
In the first half of 2024, the UAE’s non-oil foreign trade continued to grow, achieving a record valuation of AED1.4 trillion, with non-oil exports growing by 25 per cent. These exports constitute 18.4 per cent of the total foreign trade and the overall national foreign trade expanded at an annual growth rate of 11.2 per cent, surpassing the global average growth rate of 1.5 per cent. Moreover, the total valuation of re-export operations also reached AED 345.1 billion in the first half of 2024.
Raja Al Mazrouei, the CEO of ECI, underscored the vital role of public-private partnerships in driving the growth of foreign trade, exports, and re-exports from Abu Dhabi. The growth is also driven by strategic initiatives of the UAE to boost the national economy’s sustainability and diversification, in line with the leadership’s vision.
“At Etihad Credit Insurance, we are led by the ambitious vision to achieve a seven-fold increase in our non-oil GDP contribution by 2031. We also aim to promote further expansion of our credit coverage facility which currently caters to 17 different sectors, across 110 countries, having expanded 21 times over the last five years. However, our primary focus will be on driving non-oil exports and foreign trade, while elevating the reach and competitiveness of products manufactured by UAE-based companies. We hope to continue empowering local companies by offering credit solutions, financing options, and risk management services, which will enable them to expand into global markets,” Al Mazrouei added.
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