ECI, FAB partner to provide easy access to capital for businesses
31 Mar 2019
Etihad Credit Insurance and First Abu Dhabi Bank officials singing the MoU.
Business Bureau, Gulf Today
DUBAI: Etihad Credit Insurance (ECI), the UAE Federal export credit company, has signed a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest institutions, to assist UAE-based exporters and local businesses in managing their trade finance needs and to support their international expansion ambitions.
This collaboration is a solid step towards supporting local businesses and their capability to trade globally as well as to encourage them to strengthen their position regionally and internationally, in line with the country’s diversification strategy.
Under the MoU, both the institutions will collaborate in jointly developing products and solutions that will allow UAE-based exporters and local businesses to mitigate commercial and political risks associated with international trade activities while supporting their financing needs.
Other areas of cooperation include the provisioning of conventional and Murabaha trade credit insurance, credit risk and supply risk solutions, export and SME financing, factoring, and Letter of Credit confirmations.
According to the UAE Central Bank, real GDP is expected to grow by 4.2 per cent in 2019 as oil and non-oil sectors are projected to grow by 5.2 per cent and 3.7 per cent, respectively.
In the third quarter of 2018, the UAE Central Bank reported that non-oil activities showed a resilient non-hydrocarbon sector. The resiliency is mainly due to the recovery in oil prices, in addition to a strong fiscal policy and resilient tourism and tourism-related activities.
The MoU was signed by Massimo Falcioni, Chief Executive Officer at ECI, and Manoj Menon, Senior Managing Director, Head of Global Transaction Banking at FAB, in the presence of senior officials from both institutions.
Massimo Falcioni, Chief Executive Officer at ECI, said: “Over the years, the UAE’s banking sector with its high liquidity, has been growing stronger and showing an increased potential to support the country’s economic growth. Our recent partnership with FAB, the UAE’s largest bank and one of the world’s largest and safest financial institutions, is a major milestone for ECI. This alliance supports ECI’s mandate of assisting UAE businesses and exporters in driving further growth and trade activities, as well as to strengthen its commitment to support the country’s Vision 2021 programme. Moreover, we are certain that this collaboration, through the use of innovative tools and solutions, will help track and forecast the cash flow needs of UAE-based exporters and local businesses that are looking to expand regionally and internationally.“ Andre Sayegh, FAB’s Group Deputy Chief Executive Officer and Group Head of Corporate and Investment Banking, said: “FAB is delighted to work with Etihad Credit Insurance to help local businesses to grow, and in turn support the UAE’s broader economic diversification agenda by bolstering the country’s position as a world class trading hub. In association with ECI, this agreement enables us to provide businesses with easier access to capital when they look to trade. Our services will not only strengthen these companies locally, but also provide them with the tools and means to expand beyond boundaries to secure new growth opportunities internationally.”
Manoj Menon, Senior Managing Director, Head of Global Transaction Banking at FAB, said: “We are proud and excited to be part of this initiative between FAB and ECI, which represents a strategic partnership between two local institutions that are key to the development of the UAE export economy. This partnership significantly enhances the financing capacity to local exporting and re-exporting companies, providing innovative solutions and alternative channels by which financing can be readily accessed. In particular, this initiative enables increased trade financing to the local SME export sector, which is an increasingly significant customer segment within the UAE economy.”
It may be mentioned that 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.
Meanwhile, FAB, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience.