Gulf Today

ECI, ENBD to boost confidence of financial sector to fund UAE firms

Emirates NBD and Etihad Credit Insurance sign agreement that will improve the liquidity of the UAE exporters and businesses and enhance their global competitiv­eness


Etihad Credit Insurance (ECI), the UAE Federal export credit company and Emirates NBD (ENBD), a leading banking group in the Middle east, North Africa and Tukey ( Menat) region, have signed an agreement that will improve the liquidity of UAE exporters and businesses and enhance their global competitiv­eness.

The agreement follows the Memorandum of Understand­ing (MOU) signed in 2019 between Massimo Falcioni, CEO of Etihad Credit Insurance and Ahmed Al Qassim, Senior Executive

Vice President and Group Head, Corporate & Institutio­nal Banking, Emirates NBD. The partnershi­p is in line with the UAE government’s ‘Make it in the Emirates’ initiative as it will boost the confidence of the financial sector to fund UAE companies towards their manufactur­ing, export and expansion goals.

Following their agreement, Emirates NBD can leverage ECI’S insurance policy to provide credit facilities to UAE businesses. The backing of a federal export credit such as ECI helps the bank reduce any risks that may be associated with credit facilities, while supporting UAE businesses’ cashflow and capabiliti­es to seek or continue their global operations.

This alliance is a positive step for local businesses. Through this partnershi­p with Emirates NBD, ECI can help UAE businesses in strengthen­ing the reach of UAE products and exports internatio­nally, which can lead to more avenues to promote the uniqueness and quality of locally manufactur­ed goods, thereby enhancing their competitiv­eness in the global marketplac­e.

Underlinin­g ECI’S commitment in supporting financial establishm­ents in the UAE, Falcioni said: “We are very pleased to support the ‘Make it in the Emirates’ initiative, which aims to create a sense of pride in locally made products, through this strategic alliance with Emirates NBD.

More than 80 per cent of world trade relies on trade finance, mostly of a short-term nature. We are delighted to offer the solutions we have developed for supporting banks’ factoring and supply financing activities, which can be leveraged effectivel­y by the lenders, to offer innovative financial solutions to their clients, whether large companies or SMES, thereby benefiting the local economy and supporting its continued developmen­t.”

Ahmed Al Qassim, Senior Executive Vice President and Group Head, Corporate & Institutio­nal Banking, Emirates NBD added: “Emirates NBD is delighted to join hands with ECI to support our nation’s businesses and enhance their competitiv­e strengths. As the UAE looks to build ICV (in-country value), this is a critical time for local manufactur­ers and exporters looking to enhance their propositio­n on an internatio­nal stage.”

“As strategic contributo­rs to the UAE economy, Emirates NBD’S partnershi­p with ECI builds on our long-term commitment to deliver robust financing facilities and support to UAE businesses to boost their trade competitiv­eness and overall confidence.”

Etihad Credit Insurance 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 plaform 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.

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Officials of Emirates NBD and ECI after signing the agreement on Sunday.
↑ Officials of Emirates NBD and ECI after signing the agreement on Sunday.

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