HE Abdulla Bin Touq Al Marri Chairs First Etihad Credit Insurance Board Meeting of 2022
DUBAI, UNITED ARAB EMIRATES, April 3, 2022 /EINPresswire.com/ —
• ECI reports 128% growth in non-oil trade sector support to AED11.4 billion in 2021 alone, accelerating recovery of UAE’s non-oil economy
• Value of exposure underwritten by ECI increased by 266% to reach AED5.6 billion
• The export credit agency facilitated exports to 92 countries in 2021, up from 75 in 2020, for companies operating in 18 sectors
• ECI has supported the UAE’s non-oil GDP by providing payments to UAE manufacturers and traders for AED 19 billion, 60% of which was provided in 2021 alone
Etihad Credit Insurance (ECI), the Federal Export Credit Corporation of the United Arab Emirates, held its first board meeting in 2022, chaired by His Excellency Abdulla Bin Touq Al Marri, Minister of Economy of the United Arab Emirates. United Arab Emirates and Chairman of the Board, at the company’s branch in Dubai.
The meeting discussed key economic performance indicators in 2021, as well as its achievements in achieving its targets and objectives, as well as ECI’s plans and strategies for the next phase.
HE Al Marri started the meeting by expressing his thanks and gratitude to the former President of the ECI, His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, and congratulating the management of the Federal Corporation of UAE export credit for his substantial contributions to the UAE. economy, outstanding business performance, active participation in government initiatives and for its strong commitment to supporting UAE businesses and enhancing their competitiveness in regional and international markets.
“ECI has achieved record milestones in its efforts to accelerate national economic diversification and boost UAE trade, exports and investments globally. Despite the significant impact of the pandemic on the global economy, ECI has remained committed to its mission of enhancing the growth and competitiveness of UAE businesses by increasing its trade finance support,” said said HE Al Marri.
His Excellency, who was appointed President of ECI as part of the new board reform approved by the UAE cabinet in November 2021, was welcomed by the board.
During the meeting, the board reviewed the company’s annual report and its activities and achievements in 2021. The report showed that ECI’s support to exporters and SMEs in the UAE has grown to triple digits, non-oil secured trade reaching AED11.4 billion, a 128% growth from AED 5 billion in 2020.
He also disclosed that the export credit agency issued 6,620 revolving credit limits in 2021, up 229% from the 2,013 facilities it issued a year earlier; while the value of exposure underwritten increased by 266% to reach AED5.6 billion from AED1.53 billion during the same period.
ECI has protected and facilitated UAE non-oil exports to 92 countries (up from 75 in 2020) covering 18 sectors (up from 15 in 2020). Major destination countries for UAE exports and re-exports include: Saudi Arabia, Iraq, India, Oman, Kuwait, Jordan, Egypt, South Africa, United Kingdom , Hong Kong and France.
The Council also approved the confirmation of HE Dr. Thani bin Ahmed Al Zeyoudi, Minister of State of the United Arab Emirates for Foreign Trade as Vice-Chairman of the Council, as well as the formation of the Executive Committee and the formation of the Management Committee. audit and risk chaired by HE Sameh Al Qubaisi, Director General of Economic Affairs, Department of Economic Development, Abu Dhabi.
His Excellency Al Marri congratulated ECI for successfully completing its third year of operations in the UAE with an enhanced ecosystem of partnerships that contribute to adding value to the UAE’s non-oil GDP, employment and the development of the utilities sector. SME. He also welcomed the company’s third consecutive AA- international rating confirmation from Fitch and ECI’s continued membership of the Berne Union, the leading global trade association for the credit insurance industry. exports and investments, last October.
He said: “Etihad Credit Insurance’s outstanding performance and continued success in leading efforts to improve UAE’s exports accelerates and supports the UAE’s economic diversification plans, in line with our management’s vision and guidance. informed, to the new phase of growth of the UAE and to the ‘Principles of the 1950s’.
“ECI will continue to prioritize its mandate to enhance national exports and create promising growth opportunities for UAE businesses. With strategic partnerships to support the country’s exports, trade and non-oil investments, I am confident that the ECI will continue to turn challenges into opportunities to boost the competitiveness of our national economy.
In addition, His Excellency commended ECI’s role in protecting SMEs from insolvency by recovering over AED 85 million in non-payments over the past three years and liquidating claims worth AED 7 AED.9 million. In doing so, the ECI has preserved the jobs and the SMEs employed in the companies supported.
His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said, “ECI’s success is largely due to its focused implementation of its 10-year roadmap. By securing the liquidity of UAE businesses, protecting their payments and giving them access to international markets, ECI has made a significant contribution to accelerating the UAE’s recovery during the pandemic.
As directed by ECI’s Board of Directors, ECI’s management has acted to address the challenges faced by exporters, in particular increased financing costs and higher rates of rejected applications. Despite the heightened market uncertainty, ECI responded in a timely manner by increasing its trade finance support to the non-oil sector.
It ended 2021 with record financial performance and triple-digit growth in various aspects of the business, including gross written premium growth of 510% from AED 17.9 million to 109, AED5 million in 2021.
The value of ECI’s short-term trade finance guarantees extended to banks increased from AED680 million in 2020 to AED1.1 billion in 2021, while the value of medium-term trade finance guarantees /long term granted to banks – a new product launched in 2021 – is registered at AED 574 million.
From the start of operations until 2021, ECI has supported the UAE’s non-oil GDP by providing payments to UAE manufacturers and traders for AED 19 billion, 60% of which was provided in 2021 alone.
The top industries that have benefited from ECI’s unwavering commitment to helping UAE companies gain a competitive advantage in the international market are chemicals (23%), steel (21%), construction and building materials (17 percent), cables (15 percent) power (7 percent), packaging (4 percent), electronics (4 percent), healthcare (3 percent) and printing ( 2 percent).
Over the years, ECI has evolved to offer more comprehensive solutions ranging from export insurance to export finance, project finance, infrastructure finance and trade finance to support key sectors such as energy and health. For project financing, in particular, it offers guarantees that reduce financing costs (interest rates and margins) compared to pure commercial loans.
In 2021, ECI launched its Political Risk Insurance solution for the first time, aiming to provide financial protection to investors and businesses in the United Arab Emirates who are at risk of losing money due to political events, by protecting against the possibility of a government taking action that causes the insured to suffer significant financial loss. A strategic partnership has been established with DP World, under the World Logistic Passport program, to improve the competitiveness of UAE exporters, as well as protect and facilitate investments in logistics infrastructure and trade finance .
Council members who attended the meeting included His Excellency Sameh Al Qubaisi, Director General – Economic Affairs – representing the Emirate of Abu Dhabi; His Excellency Eng. Saed Mohammed Al Awadi, Managing Director of Dubai Industries and Exports – representing the Emirate of Dubai; His Excellency Marwan Ahmed Al Ali, Director General of Finance Department of Ajman – representing the Emirate of Ajman; His Highness Sheikh Omar bin Saqr Al Qasimi, Executive Director of the Office of Investment and Development – representing the Emirate of Ras Al Khaimah; His Excellency Ahmed Salem Al Yamahi, Deputy Director of Finance Department – representing the Emirate of Fujairah; His Excellency Omar Ahmed Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technologies; Mr. Amer Abdul Rahim Kazem, Head of Internal Audit, Emirates NBD, Board Member, Emirates NBD Egypt; Mrs. Rajaa Mohammed Al Mazrouei, Executive Vice President of Fintech Hive, Member of the Board of Directors of the Arab Bank for Investment and Foreign Trade “Al Masraf”. ECI’s CEO, Massimo Falcioni, was also present at the Board meeting.
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