Etihad Credit Insurance (ECI), the UAE’s federal export credit company has posted by the end of 2023 a gross exposure of AED9.6 billion ($2.6 billion), a remarkable 21-fold increase compared to 2019, according to the company’s latest annual report for 2023. This was announced by H.E. Raja Al Mazrouei, chief executive officer of ECI, during a media briefing attended by other senior officials from the company.
Aligning with the UAE’s economic vision
H.E. Abdulla Bin Touq Al Marri, UAE minister of Economy and chairman of ECI Board of Directors, said: “Under the guidance of our wise leadership, the UAE has achieved outstanding successes on regional and international levels, solidifying its standing as the region’s leading hub for trade and investment. With an emphasis on emerging industries and SMEs, we will continue to broaden and diversify our economy according to the ‘We the UAE 2031’ vision, which aims to increase the country’s non-oil exports to AED800 billion and raise the volume of non-oil foreign trade to AED4 trillion by the next decade.”
H.E. Bin Touq added: “Etihad Credit Insurance has significantly contributed to advancing this national vision by fostering the expansion of domestic trade and enterprises and facilitating crucial economic relations through comprehensive economic partnership agreements (CEPAs). The company’s innovative credit solutions and strategic collaborations have enhanced the competitiveness of UAE businesses worldwide. This not only diversifies the UAE’s economic landscape, but also propels its non-oil exports forward.”
His Excellency stated that ECI’s recent commitments to clean and green energy initiatives further signify its role as a driving force towards sustainability. “ECI’s support has been financial as well as strategic, contributing to the 2030 Agenda for Sustainable Development through support for non-oil trade, while also ensuring compliance with international standards,” H.E. Bin Touq added.
Supporting SMEs and large corporations
The report also highlighted ECI’s notable role in fostering the expansion of the UAE’s non-oil exports. In 2023, ECI’s credit covers amounted to 3.1 percent of the UAE’s AED441 billion ($120 billion) in non-oil exports, compared to 1.9 percent in the previous year. This growth was supported by a diverse portfolio, with over two-thirds of the beneficiaries being small and medium-sized enterprises (SMEs), while large corporations represented another 20.9 percent. This underscores ECI’s significant contribution to the UAE’s progress towards its 2031 foreign trade targets.
Fostering sustainable and secure non-oil trade
H.E. Raja Al Mazrouei, chief executive officer of ECI, said: “We are committed to providing innovative credit solutions, facilitating easy access to finance, offering expert market insights, and nurturing strategic collaborations in line with our vision and mission to foster sustainable and secure non-oil trade for the UAE’s economy. We empower UAE businesses to confidently participate in global trade, driving towards a robust and well diversified economy. Leveraging our innovative approach and meticulously crafted 2023 business plans, ECI has emerged as a beacon of stability for UAE enterprises. We have seen a significant increase in the demand for our services, with a remarkable surge in insured trade and investment transactions. Our dedication to protecting the interests of UAE exporters is evident in the numbers, with a 25 per cent increase in policies issued compared to 2022.”
Al Mazrouei added; “As we continue to adapt and grow, expanding ECI’s services to strengthen national exports stands as our primary objective, marking a significant leap forward in our capabilities and outreach. This new strategic phase aims to double the growth rate of UAE exports through ECI and increase our contribution to the non-oil GDP by 7-fold by 2031.”
The report stated that ECI’s global outreach efforts have supported UAE exporters across 17 sectors in 110 countries, resulting in a non-oil trade and investment of AED14 billion ($3.8 billion) in 2023. This success was facilitated by approximately 21 agreements signed with government export credit agencies worldwide, solidifying ECI’s position as a trusted partner for international trade.
Supporting clients beyond credit insurance
Furthermore, the report highlighted ECI’s commitment to supporting clients beyond credit insurance. The company effectively handled overdue payments, leading to the collection of AED82 million. ECI has also made significant contributions to facilitating access to financing for UAE exporters, providing over AED1.8 billion worth of credit cover to financial institutions over the past five years. Additionally, Etihad Credit Insurance secured an AA- international rating by Fitch for the fifth consecutive year, reflecting the company’s ability to mitigate potential risks and its strong presence in global markets.
Expanding global outreach and partnerships
The report noted that Etihad Credit Insurance has provided a credit cover of AED4.7 billion to the UAE’s industrial sector, a key contributor to non-oil exports, with AED1.4 billion committed in 2023 alone. This aligns with ECI’s partnership with the Ministry of Industry and Advanced Technology (MoIAT) to enable manufacturers’ exports.
Commitment to sustainability and economic development
The report also highlighted ECI’s projects aimed at supporting economic development and improving the quality of living. This includes a credit insurance commitment of $500 million to boost Africa’s clean energy transition as part of the UAE’s $4.5 billion Africa Green Investment initiative, announced during the Africa Climate Summit held in September 2023. Additionally, the report underscored ECI’s strong track record of managing claims and recoveries, with AED353 million or 83 percent of the AED415 million in late payments successfully recovered.
Leveraging CEPAs
Furthermore, the report outlined ECI’s plans to leverage the UAE’s CEPAs to further enhance trade and strengthen commercial relations. These efforts will be supported by ECI’s expanding information database, which grants access to over 300 million corporates globally, empowering UAE-based exporters with valuable insights and intelligence.
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