ECI targets $10B in credit insurance to exporters

dubai — The UAE’s federal export credit firm Etihad Credit Insurance (ECI) aims to provide 20 per cent or $10 billion in credit insurance to the UAE’s local manufacturing exporters who exported goods worth $52 billion last year, a senior official said on Wednesday.

Massimo Falcioni, CEO of Etihad Credit Insurance, said this move will help improve contribution of trade and exports in the country’s GDP.

“We are targeting sectors which are exporting goods from the UAE. The major focus is those $52-billion local manufacturers who are exporting outside the country. We have identified small, medium and large companies and we have created a medium-term plan… We will open new markets for UAE exporters and add additional value to economy,” he said.

On Wednesday, ECI signed a Memorandum of Understanding with Markel International, a specialist insurer that handles the commercial insurance and reinsurance needs of companies, professionals and sole traders through its offices across the UK, Europe, Canada, Latin America and Asia Pacific. Ewa Rose, managing director for trade credit, political risk and surety at Markel International, said the UAE is currently the largest market for trade credit insurance in the Mena region.

“This has also been the strategic location where a majority of the credit insurers have their base and use it as a hub to support businesses in the region. The UAE offers stable economic and political environment, ease of doing business, relatively healthy regulatory and legal environment and geographical positioning, making it a trading hub for the region with access to quality talent,” she said.

Falcioni pointed out that there is a need of support for working capital for exports because sometimes access to banking becomes a matter of concern when there is no payment. “Around 59 per cent of UAE exports’ destination is Asia and sometimes it is challenge to get receivables. So we have identified a lot areas for improvement,” Falcioni said.