Khalifa Fund and ECI partner to boost export capabilities of SMEs in UAE

• Cooperation deal to help the government reach its goal of increasing the contribution of the SME sector to the national economy to around 60 per cent in 2021
• ECI will support businesses under Khalifa Fund through organising workshops regarding the benefits of trade protection solutions, as well as offering bespoke trade credit services
• The Federal export credit company will also provide market intelligence and country risk report to highlight the commercial and political risks associated in international trade activities

Dubai: Khalifa Fund for Enterprise Development and the Etihad Credit Insurance (ECI), the UAE Federal export credit company have partnered to shore up the export capabilities of the country’s small and medium enterprises (SMEs). An MoU was signed by Mouza Obaid Al Nasri, Acting CEO of Khalifa Fund and Massimo Falcioni, CEO of ECI.

The agreement aims to bolster SMEs and local enterprises registered under Khalifa Fund as part of their support for the UAE’s national diversification programme. Businesses and exporters under Khalifa Fund stand to gain from this partnership as ECI guarantees to provide them access to a range of export credit, financing and investment insurance products.

According to the Federal Competitiveness and Statistics Authority, the contribution of the SME sector to the UAE’s GDP is estimated at 53 per cent in 2019, up from about 49 per cent in 2018. SMEs, in addition, also contribute to 95 per cent of the companies in the country and employ 86 per cent of the total workforce in the non-oil private sector.

Underscoring the importance of this sector, the Federal government aims to increase the contribution of the SME sector to the national economy to around 60 per cent by 2021, a reason ECI offers ‘SME Protect’, a trade credit solution designed to support the growth plans of SMEs globally and assist them while entering high-growth markets. The launch of this product makes ECI the first government export credit company in Middle East and Africa to offer UAE SMEs an online trade credit solution to secure trade and export to more than 50 countries. 

Under the agreement, the two entities will establish a committee that will implement initiatives in a bid to bolster the country’s exports. The number of members, the structure of the committee and the means of financing, as well as the schedule of meetings, the working mechanism and the decision-making process will be finalised by ECI and Khalifa Fund.

As part of the agreement, ECI will support businesses under Khalifa Fund through organising workshops regarding the benefits of trade protection solutions, as well as offering bespoke trade credit services that can significantly help cement their presence in the global arena their exports globally. 

The Federal export credit company will also provide market intelligence and country risk report to highlight the commercial and political risks associated in international trade activities.

Khalifa Fund will promote the said relevant workshops and events to respective members, as well as facilitate referrals to ECI for enquiries involving trade credit, trade finance, and surety bonds solutions. The Fund will also uphold ECI’s services and products through its newsletter, website, magazine, direct mailing, and events.

Mouza Al Nasri, Acting CEO stated: “The partnership with ECI is an embodiment of Khalifa Fund’s unswerving commitment towards further enhancing the export operations of SMEs in the UAE. Khalifa Fund and ECI share the same vision, and have both always been vital to the growth of the UAE’s non-oil economy.

I’m extremely confident that this collaboration will fortify the operations of our members, thereby further reinforcing the country’s economy towards greater heights.”

Highlighting the importance of this strategic agreement, Falcioni said: “We are incredibly honoured to undertake this partnership with Khalifa Fund, which aims to give a boost to UAE’s SMEs in the global arena. Our institutions share a common mandate to support small businesses and help them prosperously expand, and this alliance will allow us to facilitate new development of products that will help us achieve our aggressive goals of positioning the UAE as the global hub for trade and business. I am looking forward to the many opportunities that this alliance will offer in the interest of the country’s SMEs.”

Established in 2007 under the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, Khalifa Fund is an Abu Dhabi-based independent, not-for-profit economic development agency known for supporting entrepreneurs and the development of the SME ecosystem in the UAE.

It helps develop small businesses in the capital through fostering an investment culture amongst UAE nationals. Khalifa Fund began with a total capital of AED 300 million, which gradually increased in 2009 to AED 1 billion, in order to meet the growing demand for the Fund’s services. In 2011, the Fund’s total capital was increased to AED 2 billion, and the Fund covered all of the UAE through a network of branches.

ECI has also shown its steadfast commitment to boost SMEs in line with the UAE’s national export activity and economic diversification, as it has issued AED 420 million worth of trade credit support to these businesses from January to November 2020, which translates to AED 1 billion non-oil trade insured turnover. It has insured the exports of SMEs as well as operations in the domestic market—allowing them to stay competitive in the trade industry amidst the height as well as the easing of the coronavirus disease (COVID-19) pandemic.

The guarantees helped protect the liquidity of SMEs amidst this challenging economic cycle, assisting businesses in reducing their cost of banking funding and allowing them to request their preferred bank to discount the invoices—secured by ECI—at preferential rate.

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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.

For media enquiries, please contact:
Abeer Al Mutawa
Director of Marketing & Communications
Etihad Credit Insurance
+971 4 245 4445
abeer.almutawa@eci.gov.ae 

Vince Ang
New Perspective Media Group
Email: vince@newperspectivemedia.com 
04 244 9642

About Khalifa Fund for Enterprise Development

Khalifa Fund is an independent, not-for-profit, SME development organisation of the Abu Dhabi Government. Khalifa Fund’s mandate is to develop and empower the culture of entrepreneurship, encourage innovation, and aid and support with UAE’s SME ecosystem.

Khalifa Fund was established in 2007, by the virtue of the Law 14 of 2005 and its amendments, in the implementation of the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi.

© Press Release 2021