The UAE's Federal export credit company, Etihad Credit Insurance (ECI), recorded a gross exposure of Dh9.6 billion by the end of 2023, experiencing a staggering 21-fold increase compared to 2019.
Abdulla Bin Touq Al Marri, Minister of Economy and Chairman of ECI Board of Directors said: "With an emphasis on emerging industries and SMEs, we will continue to broaden and diversify our economy according to the 'We the UAE 2031' vision, which aims to increase the country's non-oil exports to Dh800 billion and raise the volume of non-oil foreign trade to Dh4 trillion by the next decade."
Bin Touq added: "ECI's support has been financial as well as strategic, contributing to the 2030 Agenda for Sustainable Development through support for non-oil trade while also ensuring compliance with international standards."
ECI facilitated the expansion of the UAE's non-oil exports, which covered 3.1 per cent of Dh441 billion in 2023, compared to 1.9 per cent in the previous year.
This growth was supported by a diverse portfolio. Over two-thirds of beneficiaries were small and medium-sized enterprises (SMEs), while large corporations represented another 20.9 per cent.
New strategic phase
Raja Al Mazrouei, CEO of ECI, said: "We are committed to providing innovative credit solutions, facilitating easy access to finance, offering expert market insights, and nurturing strategic collaborations in line with our vision and mission to foster sustainable and secure non-oil trade for the UAE's economy. Our dedication to protecting the interests of UAE exporters is evident in the numbers, with a 25 per cent increase in policies issued compared to 2022."
Al Mazrouei added: "This new strategic phase aims to double the growth rate of UAE exports through ECI and increase our contribution to the non-oil GDP by 7-fold by 2031."
ECI's global outreach efforts supported UAE exporters across 17 sectors in 110 countries, amounting to non-oil trade and investment of Dh14 billion in 2023. This was made possible by approximately 21 agreements signed with government export credit agencies worldwide.
Additionally, ECI's commitment to supporting clients beyond credit insurance was demonstrated by the company's effective handling of overdue payments, leading to the collection of Dh82 million.
It showcases ECI's significant contributions to facilitating access to financing for UAE exporters, with over Dh1.8 billion worth of credit coverage provided to financial institutions over the past five years.
Non-oil exports
Furthermore, the report stated that ECI has given a credit cover of Dh4.7 billion to UAE's industrial sector, a key contributor to non-oil exports, with Dh1.4 billion committed in 2023 alone, enabling manufacturers' exports achievement and in line with the company's partnership with the Ministry of Industry and Advanced Technology (MoIAT).
It further highlighted ECI's projects that aim to support economic development and improve the quality of life, including a $500 million credit insurance commitment to boost Africa's clean energy transition as part of the UAE's $4.5 billion Africa Green Investment initiative, announced during the September 2023 Africa Climate Summit.
It added that the company supported clients in managing late payments worth Dh415 million, of which Dh353 million, or 83 per cent, were successfully recovered. ECI-backed trade finance lending crossed Dh1 billion in the first year of a partnership with DP World Trade Finance.
The report also outlined ECI's plans to leverage the UAE's Comprehensive Economic Partnership Agreements (CEPAs) to enhance trade further and strengthen commercial relations. These efforts will be supported by ECI's expanding information database, which grants access to over 300 million corporates globally, empowering UAE-based exporters with valuable insights and intelligence.
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