New $150mln fund set to promote export of UAE-produced goods

Budget will be used to extend loans to foreign buyers of UAE products

  
Image used for illustrative purpose. Abu Dhabi Ports employees at work at Khalifa Port

Image used for illustrative purpose. Abu Dhabi Ports employees at work at Khalifa Port

Abu Dhabi Ports/Handout via Thomson Reuters Zawya

The Abu Dhabi Exports Office (ADEX) has allocated $150 million (550 million UAE dirhams) for promoting UAE’s products in overseas markets.

ADEX is established by the Abu Dhabi Fund for Development (ADF) and will target beefing up exports and support ongoing efforts to diversify the UAE economy.

Mohammed Saif Al Suwaidi, director-general of AFD, said the allocation will help “facilitate direct loans to foreign buyers as well as lines of credit for international financial institutions exclusively available to importers of goods and services from UAE companies.” 

Foreign buyers refer to companies purchasing UAE-based export goods and services, according to a spokesperson.

“Allocating these funds in support of our national export companies represents a major step advancing the ADEX mandate to increase the volume and value of UAE exports and drive sustainable national economic expansion,” Al Suwaidi said in a statement.

ADEX is a government body established in 2019 to support the growth of the UAE’s exports industry. It extends direct loans to foreign firms that are looking to buy goods and services from the Gulf state.

Value of exports

Dubai continues to see a growing overseas appetite for local produce.  

The value of the emirate’s exports went up by 22 percent last year to 155 billion UAE dirhams, according to the latest data from Dubai Customs. The value of re-exports also increased by 4 percent to 420 billion dirhams, while imports grew by 3 percent to 796 billion dirhams.

The UAE has been diversifying its economy to reduce its reliance on oil revenues. According to the International Monetary Fund (IMF), non-oil growth in the country could pick up this year to around 3 percent, the fastest since 2016, on the back of Expo 2020 and fiscal stimulus.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.Maceda@refinitiv.com

#UAE #TRADE #EXPORT #FUND #ECONOMY

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