Mr. Bharat Krishnan, Head of Sales & Marketing at National Food Industries LLC said: “Access to working capital and increased financial risk of exporting are at the top of the list of the challenges we as exporters as well as our international buyers are dealing with. Access to financing is essential to get goods and services flowing across our borders and put us on the road to immediate economic recovery and long-term growth. What we heard today is just how far the UAE has gone to strengthen the financial support network available not only to local companies but also to our foreign buyers that can effectively make exports the lynchpin of our COVID-19 economic recovery.”
Eng. Saed Al Awadi, CEO of Dubai Exports, an agency of Dubai Economic Development, said: “The foresight of UAE leadership to invest in establishing entities like ADEX and ECI over the past few years will prove to be a game changer in our ability to strategically leverage exports to drive our national economic recovery and long-term growth. The availability of export credit financing and insurance in today’s cash strapped environment gives our exporters a powerful competitive advantage and increases the attractiveness of UAE companies as international trading partners.”
Both ADEX and ECI were established within the past three years with similar mandates to help drive diversification and growth of the UAE export economy as a core pillar of the nation’s post crude oil economy. Both entities contribute to the country’s overall export development community ecosystem, providing uniquely distinctive but also highly complementary products and services that in today’s challenging economic environment add great value to the exporters and their foreign buyers.
ADEX was established by Abu Dhabi Fund for Development to provide direct and indirect financing and credit guarantees to overseas buyers from the public and private sectors seeking to import goods and services from UAE companies in all non-crude oil sectors. Through its direct credit facilities, ADEX provides loans to qualifying foreign buyers of UAE goods and services with payment made directly from ADEX to the UAE exporter, reducing their risk of delayed or non-payment. ADEX has allocated AED 550 million ($150 million) in funding for qualifying export transactions of national companies for 2020 that is immediately available to support COVID-19 economic recovery.
ECI was established as the UAE Federal export credit company to provide guarantees and insurance solutions to mitigate the political and commercial risks arising from financing or refinancing export transactions on behalf of the UAE government. ECI has built a large ecosystem of strategic partners that includes local and international banks which can offer loans to UAE companies to fund exports to overseas buyers, with ECI providing insurance to secure that funding and protect the supply chain.
ADEX and ECI have also established a strategic partnership to work together to combine their highly complementary suite of financial and insurance products and services to help stimulate growth and maximize the competitiveness of UAE companies in the global marketplace. The entities are also working on developing new joint products to help UAE companies and their overseas buyers address the immediate liquidity and cash flow issues threatening the global supply chain.
Mr. Saeed Al Dhaheri, Acting Director General of ADEX, said: “This international buyers forum is evidence of the potential power and impact of our united together national mantra to grow our export economy. The strength and reach of Dubai Exports to bring high-value buyers from key markets around the world to the doorstep of UAE’s top exporters enabled us to deliver a strong and clear message that the UAE stands behind our exporters and their foreign buyers alike with strategic financial products and services that can drive their business growth and mutual success.”
The international buyers event is part of a shared commitment between Dubai Exports, ADEX and ECI to support local export companies across the UAE to strengthen competitiveness on a global stage and safely enter new international markets while diversifying the UAE export economy and stimulating economic growth.
About Abu Dhabi Exports Office (ADEX)
Abu Dhabi Exports Office (ADEX) was established by Abu Dhabi Fund for Development (ADFD) to support the national economy and enhance its competitiveness through the provision of financing and guarantees to overseas buyers from the public and private sectors seeking to import goods and services from the UAE. ADEX also aspires to contribute to raising the volume of national non crude oil exports and facilitate entry into new markets.
About Abu Dhabi Fund for Development (ADFD)
Abu Dhabi Fund for Development (ADFD) is a leading national entity for economic development aid owned by the Abu Dhabi government. Established in 1971, it aims to help emerging countries by providing concessionary loans to finance sustainable development projects as well as administering long-term investments and direct contributions. In addition to managing development grants offered by the Abu Dhabi government, ADFD has adopted a policy of supporting the national economy and financing UAE private sector investments. Since its inception, ADFD has marked developmental milestones in more than 94 developing countries. Spanning the last 48 years, the Fund's development projects and investments, valued at AED102 billion, have helped the international community achieve sustainable economic growth as well as drive the implementation of the United Nations’ Sustainable Development Goals (SDGs).
About Dubai Exports
Dubai Exports, an agency of Dubai Economy - Government of Dubai, commenced operations in 2007. As part of the Economic Development Department of Dubai, its mandate is to facilitate trade from Dubai and establish itself as a world-class export development and promotion body by creating an enabling environment for Dubai’s exporters. Dubai Exports has developed a range of value-added trade support services to UAE-based firms exporting through Dubai, for accelerated and profitable expansion of their businesses in foreign markets.
About Etihad Credit Insurance
Etihad Credit Insurance (PJSC) was established by UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah and Ajman. The company started its operations in February 2018. ECI plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments and strategic sectors development, in line with UAE Vision 2021 agenda. It is tasked to accelerate and sustain national economic diversification as well as support the export and re-export of UAE goods, works, services, and the foreign investments of the UAE businesses as well as support the exporters in the domestic trade through a range of export credit, financing and investment insurance products.
To provide UAE businesses with solutions that meet their growth objectives locally and internationally, ECI builds a comprehensive platform of strategic partnerships across government, insurers, re-insurers, brokers, banks and lenders, regional and international Export Credit Agencies, governments and trade promotion agencies in addition to world organisations for economic development. ECI has also been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings. To find out more about support for exporters and domestic businesses, contact ECI at email@example.com
© Press Release 2020