Wed 07-10-2020 16:47 PM
DUBAI, 7th October, 2020 (WAM) -- The Etihad Credit Insurance, ECI, has announced the issuance of over 1,400 revolving credit guarantees covering AED4 billion-worth of non-oil exports from January to June 2020, thereby providing a solid contribution to employment and the non-oil economy of the country.
To boost national export activity and economic diversification, the ECI has insured non-oil exports to more than 70 countries.
The top beneficiaries of the ECI in terms of sectors in the first half of 2020 are cable (35 percent), steel (26 percent), and petrochemicals (13 percent). These sectors represent three-quarters of the ECI’s insured sectors. Meanwhile, the healthcare (9 percent), automotive (9 percent), building materials (7 percent), and food (1 percent) sectors rounded out the beneficiaries.
Massimo Falcioni, CEO of ECI, said the substantial amount of credit guarantees issued by the federal export credit company along with the fiscal stimulus packages floated by the UAE government provided a safety net and a stable source of support for UAE exporters and re-exporters. This way, they can continue to win contracts, fulfil orders, and get paid even in the most critical months.
"ECI has continuously fulfilled its role as an economic stabiliser. We are working in cooperation with chambers of commerce as well as airports and ports’ free zone authorities to ease SMEs’ access to trade finance solutions. In line with the UAE government’s measures that aim at shielding corporates from the impact of the global economic downturn, the ECI has issued 1,468 revolving credit guarantees for a total exposure amount of AED1.6 billion, which is equivalent to AED4 billion guaranteed non-oil export coverage in the first half of the year to support exporters as they grow in the international market," Falcioni stressed.
To further support exports, the ECI has increased payment protections, relaxed terms for policyholders, and expedited approvals and claims processing. The company has also introduced flexibility on premium rates despite the increase in bankruptcy risk to continuously provide stable risk coverage.
The ECI has also become a backstop for the supply chain with its increased financial support on aspects indirectly related to exports, such as coverage for working capital, pre-shipment finance, supply financing guarantees, and support to domestic suppliers and exporters.