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Dubai, United Arab Emirates: The United Arab Emirates’ federal export credit company, Etihad Credit Insurance PJSC (ECI), proudly announces 6 years of sustained AA- Fitch Ratings. Fitch Ratings has reconfirmed ECI’s Insurer Financial Strength (IFS) rating and Long-Term Issuer Default Rating (IDR) at ‘AA-’ (very strong) with Stable Outlooks. This prestigious recognition, from 2019 to date, highlights ECI’s unwavering dedication to support UAE’s economic diversification and boosting the international competitiveness of UAE-based businesses.
His Excellency Abdulla Bin Touq Al Marri, Minister of Economy and Chairman of the Board of Directors of Etihad Credit Insurance said: "The positive rating from Fitch reaffirms the UAE's efforts in diversifying the national economy and enhancing its competitiveness regionally and globally. It also reflects the confidence of international institutions, global rating agencies, and business communities in the UAE as a leading economic destination."
He added: "This rating will strengthen the creditworthiness of Etihad Credit Insurance, the strength of its financial position, and its role in enhancing the reputation and competitiveness of national exports in foreign markets. This success confirms our firm commitment to increasing economic diversification in the country, supporting and encouraging exporters to deal with foreign markets confidently and securely, thereby enhancing the achievement of the economic targets of 'We the UAE 2031' vision. This vision aims to enhance the country's position as a global partner, an attractive and influential economic hub, and to increase the non-oil national exports of the country to 800 billion dirhams by the next decade."
Key highlights of ECI’s achievements and strategic importance:
Systemic Significance: Founded in 2018, ECI has been vital in protecting UAE businesses against commercial and political risks, reducing the costs of trade finance, and facilitating access to trade finance solutions and international markets.
Export Insurance Provider: ECI's strategic initiatives have significantly contributed to the promotion of UAE non-oil exports, evidencing a robust portfolio growth with a gross exposure of AED9.5 billion as of the end of 2023 and covering 1.9% out of AED 366 billion in 2022.
Robust Financial Health: Reflecting its very strong capitalization and prudent investment strategies, ECI has maintained a strong capital base and a highly liquid investment portfolio, coupled with a dynamic and well-diversified reinsurance program.
Government Support: The agency's strong foundation is further reinforced by substantial backing from the UAE federal government and the governments of five of the seven emirates, ensuring unwavering support for its mission.
Capital Structure: Supporting the AA- rating by Fitch, ECI has a strong capitalization with AED 250 million in paid-in capital, an extra AED 750 million contributed by its shareholders for growth objectives, and it doesn't have any debt.
Prudent Investments: ECI's investments, characterized by high liquidity and prudent allocation to short-term fixed deposits in UAE-based banks of high credit quality.
Strong Reinsurance Program: Fitch regards ECI's reinsurance panel as robust and varied, consisting of companies rated 'A' and above.
Prudent Underwriting: Fitch regards ECI's underwriting and risk management as prudent and disciplined, with commercial decision-making and conservative reserving.
ECI's role in UAE's economic vision:
Etihad Credit Insurance remains committed to the UAE's ambitious agenda to diversify its economy and boost its stature on the global trade map. Through its innovative suite of services, ECI is dedicated to empowering UAE businesses to navigate the complexities of international trade, secure competitive credit terms, and leverage strategic partnerships worldwide.
This recognition from Fitch Ratings validates ECI's strategic direction and operational resilience, setting a positive trajectory for continued contributions to the UAE's economic prosperity and the broader vision of establishing a diversified, resilient, and globally integrated economy.
“The 'AA-' rating, Fitch Ratings, for the sixth consecutive year, is more than just an honor; it reflects ECI's stable foundation, strategic objectives, and the significant role we play in supporting the UAE's strategy for economic progress,” remarked Raja Al Mazrouei, the CEO of ECI. “Since 2018, we've reached key milestones, including expanding our portfolio and enhancing our reinsurance agreements, all of which improve the UAE's export competitiveness. This grade underscores our commitment to excellence as we continue to develop and deliver robust trade financing solutions that enable UAE businesses to succeed on a global scale."