DUBAI- Etihad Credit Insurance, ECI, has signed a reinsurance agreement with the Arab Investment and Export Credit Guarantee Corporation, Dhaman, to support the growth and expansion of the UAE businesses.

This agreement will further enhance the inter-Arab trade and UAE exports globally, in line with the country’s non-oil diversification strategy and vision 2021. The two sides will collaborate to enhance economic growth in the MENA region, through an exchange of research and knowledge by offering technical assistance to Arab Foreign Direct Investment, FDI, promotion agencies as well as cooperation with Arab and International organisations involved in investment promotion.

According to CEIC Data, a team of expert economists and analysts providing the most expansive and accurate data insights into more than 200 economies, the UAE’s FDI increased by US$10.4 billion in December 2018, compared to an increase of $10.3 billion in 2017. These positive statistics present an opportunity for ECI to strengthen the support it extends to local businesses by facilitating access to funding for business expansions in global markets. Under this partnership, ECI will support international business expansion plans of UAE-based firms by covering higher risk percentage. This will strengthen and enable the businesses to explore wider opportunities thus broadening their regional and global footprint.

The agreement was signed by Massimo Falcioni, CEO at ECI, and Fahad Rashid Al-Ibrahim, Director-General at Dhaman, in the presence of senior managers and executives from the respective organisations. The agreement marks a solid review and follows up to the MoU signed between the two organisations in 2018. This partnership takes a crucial step in outlining a more comprehensive framework shared between the two institutions that will leave a strong and lasting impact on the trading sector and export community in the Arab world. Commenting on the partnership, Falcioni said that this agreement supports ECI’s substantial role in the transformation of the UAE’s economy by driving the non-oil sectors and stimulating advancement in the various trade sectors. It further allows ECI to cover more risks that will help UAE-based businesses to grow and compete in the international markets."

Al-Ibrahim, in turn, noted, "The reinsurance agreement signed between ECI and Dhaman is a testament to the alliance’s success. We believe that increasing the insurance capacity and sharing the risks can contribute to the development and progress of Arab exports worldwide.

© Copyright Emirates News Agency (WAM) 2019.