Fitch reaffirms ECI’s AA- rating, recognizing UAE’s economic strength

With stable outlook for fifth consecutive year
Fitch reaffirms ECI’s AA- rating, recognizing UAE’s economic strength
Abdullah bin Touq Al Marri, the minister of economy and chairman of ECI board of directors (Photo from WAM).

Etihad Credit Insurance (ECI), the UAE’s Federal export credit company, has received a reaffirmation from Fitch Ratings. The company has been assigned an ‘AA-‘ (Very Strong) rating for Insurer Financial Strength (IFS) and Long-Term Issuer Default, both with stable outlooks.

In fact, this rating serves as a testament to ECI’s financial strength, significant contribution to the UAE’s economic diversification efforts, and its crucial role in providing insurance to businesses and SMEs in the country. It particularly highlights ECI‘s support for non-oil export and re-export activities, underlining its systemic importance in fostering economic growth and resilience.

Forward-thinking vision

Abdullah bin Touq Al Marri, the minister of economy and chairman of ECI board of directors, stated that the continuous reaffirmation of ECI’s ‘AA-‘ rating for five consecutive years reflects the trust placed by the international community in the UAE’s economic capabilities. He further emphasized that this achievement affirms the forward-thinking vision of the UAE’s leadership and their steadfast commitment to fostering a diversified and innovative economy.

Read more: UAE’s ECI named Best Export Credit Agency in 2022

In addition, these accomplishments serve as a testament to the country’s advanced economic position. They also highlight the crucial role played by ECI in driving economic diversification efforts. Furthermore, ECI facilitates access to new markets for national exports. This direction aligns with the objective of increasing non-oil exports to AED 800 billion, in line with the aspirations of the ‘We the UAE 2031’ vision.

ECI’s integral role

Raja Al Mazrouei, the CEO of ECI, highlighted the significance of this recognition. She emphasized that it reflects the international community’s trust in the UAE’s dynamic economy. Furthermore, it recognizes the integral role played by ECI in contributing to the country’s economic landscape. She added that the organization’s robust financial position has been instrumental in achieving this rating. Additionally, their persistent focus on enhancing the global competitiveness of UAE’s exports has played a crucial role. This rating holds paramount importance in realizing the nation’s aspirations.

Record growth

Moreover, in 2022, ECI played a pivotal role in supporting the UAE non-oil trade, which achieved record growth that exceeded AED2.2 trillion by year’s end. The company’s strategic initiatives included the value of non-oil insured turnover of AED14.4 billion and underwritten exposure worth AED8.1 billion. These vital measures spanned 16 different sectors and reached 106 countries, fostering international collaboration with key partners.

ECI agreements

On June 13, ECI and Export Insurance Company (KazakhExport) forged an agreement to enhance trade.  In a collaborative effort, the two entities have reached an agreement to establish a task force aimed at investigating further prospects for cooperation. This partnership will prioritize seven strategic areas to foster mutual growth and trade expansion.

Furthermore, during December 2022, ECI joined forces with Ras Al Khaimah Economic Zone (RAKEZ) to bolster the emirate’s journey towards economic diversification and stimulate its non-oil foreign trade sector.

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