- ECI coverage to boost RAK Ceramics’ competitiveness as it cements its position as one of the world’s biggest ceramics brand
- Trade Credit Insurance with increased coverage will allow the UAE-based manufacturer of tiles, sanitaryware, porcelain tableware and faucets to tap more markets in the global arena
- RAK Ceramics to gain wider access to trade and banking finance by leveraging trade credit insurance from ECI
Etihad Credit Insurance (ECI), the UAE’s Federal Export Credit Company, announced today that it will be providing export credit protection to RAK Ceramics PJSC (Ticker: RAKCEC), one of the largest ceramics brands in the world, to support its global expansion plans.
This coverage will boost the competitiveness of RAK Ceramics, one of the largest exporters in the UAE, and cement its global position in line with its growth strategy. A major source of employment in the UAE and abroad, the company employs about 12,000 employees from over 40 countries.
Under this deal, ECI will be providing RAK Ceramics with a comprehensive Credit Insurance Policy which will shield the company against commercial risks such as insolvency and payment default, as well as political risks.
The increased reduction in risk resulting from this coverage will allow the UAE-based manufacturer – which serves clients in more than 150 countries through its hubs in Europe, Middle East and North Africa, Asia, North and South America and Australia – to tap more markets in the global arena.
By leveraging the trade credit insurance from ECI, RAK Ceramics will also gain wider access to trade finance and additional funding from banks, which will help its growth plan.
Highlighting its commitment to support UAE-based companies in line with the country’s strategy in bolstering its non-oil economy, Massimo Falcioni, CEO of ECI, said, “We are honoured and delighted to support RAK Ceramics as they raise the UAE flag around the world through their world-class and innovative products. As a frontrunner in providing lifestyle solutions through its state-of-the-art products, RAK Ceramics mirrors the UAE’s capability to be at the forefront of strategic sectors across the globe.”
“Our financial credit solutions will not only help them achieve their growth plans safely but will also ensure that they remain agile and competitive in this new world order,” Falcioni added.
Underscoring the importance of this new partnership, Abdallah Massaad, Group CEO of RAK Ceramics, said, “As we celebrate three decades of ceramic excellence, we are proud to be a global company that is also considered as one of the best homegrown brands in the UAE. As we continue to strengthen our position as world leaders in the field of global ceramics, we are pleased to partner with Etihad Credit Insurance, and we are confident that they will enable us to enter the new milestone of growth and product innovation.”
Meanwhile, Mahan Bolourchi, Managing Director of Global Credit Solutions for Middle East & International Hubs at Howden Insurance Brokers, emphasised why ECI is the right choice to support the growth plans of RAK Ceramics, underscoring that the bespoke risk mitigation tools of ECI can help RAK Ceramics attain further growth.
“While RAK Ceramics already successfully implemented its trade credit insurance for the past decade with another private credit insurer, ECI could be the right partner to support them in their next growth journey. The federal export credit company’s firm mandate to advance local companies and exporters in line with the vision of the UAE’s leaders to boost the non-oil sector allows them to provide innovative financial tools that guarantee protection in spite of any risk,” he said.
Howden Insurance Brokers — the insurance intermediary in charge for the agreement between ECI and RAK Ceramics — represents the broking division of Hyperion Insurance Group, the world’s largest majority employee-owned insurance group.
Hyperion Insurance Group manages over $8 billion premium for its clients with over 5,000 employees in 121 offices across the globe. DUAL serves as the Group’s underwriting division.
Commercial risks include insolvency of the buyer; failure or refusal of the customer to pay the purchase price in spite of the fulfilment of all its obligations towards the buyer; or failure or refusal of the guarantor to fulfil any of its obligations.
Non-commercial risks, on the other hand, include currency transfer restrictions imposed by the government of the buyer’s country; any legislative action or administrative action or omission of the buyer’s country which deprives RAK Ceramics of the ownership or control of the goods sold; or any civil disturbance in the buyer’s country that directly led to the customer’s payment default.
In addition, the agreement between ECI and RAK Ceramics will also help the latter tap new customers and suppliers in case of disruptions, through the former’s global network of more than 360 million businesses worldwide