Jafza, ECI showcase new trade and export financing solutions
More than 8,000 companies in the Jebel Ali Free Zone are set to directly benefit from the new collaboration.
Jafza has introduced ECI’s tailored solutions to support UAE-based businesses and increase trade by providing them with protection against commercial and non-commercial risks.
During a webinar titled, “Etihad Credit Insurance Collaboration: Trade with Protection”, Jafza-based companies were given a walk-through of ECI’s solutions as part of the Free Zone’s drive to ensure the growth of businesses, while lowering the cost of export, by reducing the risk of non-payments, and funding, by lowering banking pre and post-shipment funding in the current unprecedented economic climate.
More than 8,000 companies in the free zone are set to directly benefit from the strategic collaboration of Jafza and ECI, giving export businesses a major boost and a competitive edge in the regional and global markets.
Jafza believes that Etihad Credit Insurance’s range of export credit, financing and investment insurance products will directly benefit Jafza’s customers, particularly the SMEs. The partnership will be a game-changer for the export of goods and services because ECI’s support increases cash flow, enables trade and contributes towards sustaining growth even as the markets recover.
The shared objectives of ECI and Jafza represent the vision of the leadership to establish the UAE as a preferred global hub for exports. The Free Zone is working closely with ECI to take this partnership forward and reinforce their commitment to business continuity with confidence.
In addition, ECI has issued more than 1,600 revolving credit guarantees for a total exposure amount of Dhs1.2 billion in the first half of 2020, which is equivalent to Dhs4 billion guaranteed non-oil trade coverage. About 55 per cent of the total revolving credit limits were issued to large private exporters and 17 per cent to SMEs, while the remaining 38 per cent were issued in favour of UAE Government companies.
The top sectors to benefit from these credit lines are F&B, Health & Pharmaceuticals, Automotive, Petrochemicals, Cable, Steel and Building materials, accommodating some of the major sectors present in the free zone. ECI’s solutions were chosen by Jafza for its customers after carefully analysing the advantages they deliver.
The range of conventional and Shariah-compliant export credit, financing and investment insurance solutions offered by ECI cover the exporters and the entire supply chain against commercial and political risks-allowing Jafza customers to mitigate and manage them with efficacy.
Jafza, which facilitated trade worth $99.5 billion in 2019, is widely responsible for promoting the non-oil trade of Dubai and the UAE. Meanwhile, ECI plays the role of a catalyst in accelerating the country’s non-oil economy, trade, investments, and strategic sectors development, in line with the UAE National Agenda leading to the UAE Vision 2021.
Jafza is one of the world’s leading free trade zones and is home to over 8,000 multinational companies. Jafza accounts for 23.9% of total FDI (Foreign Direct Investment) flow _into Dubai, sustaining the employment of more than 135,000 people in the United Arab Emirates. In 2019, Jafza generated trade worth $99.5 billion.
Strategically located at the crossroads of a region providing market access to over 3.5 billion people, Jebel Ali Port and Free Zone create an integrated multi-modal hub offering sea, air and land connectivity, complemented by extensive logistics facilities. The Port and Free Zone contributed 33.4 per cent of Dubai’s GDP in 2017.
Jafza is the leading business hub between Asia, Europe and Africa, connecting some of the fastest-growing manufacturing and consumer markets globally. With over 30 years’ experience, Jafza focuses on long-term customer relationships, building alliances with global investors and providing world-class infrastructure and support. In addition to quality-driven value-added services and incentives, Jafza is a business opportunity enabler, offering its customers easy and efficient access to substantial business opportunities in the region.
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.
