Officials at the MoU signing ceremony.

Business Bureau, Gulf Today

Etihad Credit Insurance (ECI) has signed a Memorandum of Understanding (MoU) with HSBC to help UAE businesses and exporters access global markets, which will give them a platform for sustainable growth and development over the long-term.

The MoU was signed by Massimo Falcioni, CEO of Etihad Credit Insurance, and Abdulfattah Sharaf, Chief Executive Officer, UAE and Head of International, HSBC, in the presence of senior officials from the two institutions.

The collaboration between ECI and HSBC underlines ECI’s mandate to manage risks associated with trade expansions regionally and internationally by offering a broad range of trade export finance and insurance solutions to UAE businesses in exploring new marketplaces. This partnership will bring focus on areas that include trade credit insurance tools; corporate financing; a broad range of financing solutions; bond support; exchange of industry trends and market insight; Letters of Credit Confirmations; and insightful workshops and forums, among others.

Massimo Falcioni, CEO, ECI said: “ECI has a well-defined objective to contribute to the sustainable growth and development of the country’s non-oil sectors and enhance the export reach of UAE goods and services. Equipped with cutting-edge industry knowledge, and tailored solutions, we are on the constant lookout for opportunities, that will offer greater scope for UAE businesses in consolidating their presence regionally and internationally. Our collaboration with HSBC is a pivotal step in _the banking sector as it offers a secure, transparent, and efficient platform for UAE-based businesses to grow and expand.”

Abdulfattah Sharaf, Group General Manager, Chief Executive Officer, UAE and Head of International, HSBC Bank Middle East Limited, said: “The UAE is the Middle East’s leading international trading hub and we see huge potential here, just as we did 73 years ago when we opened the country’s very first bank. We have supported the UAE’s economic development ever since and, as the world’s leading international bank, we look forward to working closely with ECI to help UAE exporters reach more customers around the world.

Last week the Etihad Credit Insurance (ECI), the UAE Federal Export Credit company, has been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (very Strong) with Stable Outlook from Fitch Ratings.

The rating reflects ECI’s systemic importance to the UAE given its important role in the diversification of the country’s economy, and confirms ECI’s strong financial position and capability to protect UAE’s exporters and investors in the international marketplace.

The federal export credit company, which was founded to protect UAE-based companies associated with non-oil export activities against non-payment, protect investments outside of UAE against political risks and support corporate bidding for international tenders, “plays a significant role in the promotion of UAE’s non-oil exports, trade, investments and strategic sectors development in line with the economic agenda of UAE’s vision 2021,” Fitch said.

Emirates NBD Capital, a 100% owned subsidiary of Emirates NBD Bank PJSC, a DFSA regulated entity based in the DIFC that offers investment banking and capital financing solutions acted as Ratings Advisor to ECI. Underlining ECI’s significant role in the UAE economy, Massimo Falcioni, CEO of Etihad Credit Insurance said: “We are proud to receive AA- rating, one of the strongest credit ratings for any financial institution in the UAE and the region. This will provide confidence in the capability of the company to protect the UAE-based exporters and investors while pursuing their expansion plans and export trade financing, leveraging ECI’s guarantees goodwill from the banking sector and financial lenders.”

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 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.