OF UAE BUSINESSES
The two entities sign agreement aimed to support UAE companies during these challenging times
Dubai, United Arab Emirates, 28th of September 2020: Jebel Ali Free Zone (Jafza), the leading business and logistics hub in the UAE, has entered into a strategic agreement with Etihad Export Credit Insurance Company (ECI), the UAE’s Federal export credit company, to support local businesses, advance exports, and drive the UAE economy during the current economic climate.
The Memorandum of Understanding (MoU) was signed virtually by Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO of Jafza and Massimo Falcioni, CEO of ECI and was witnessed by senior officials.
As per the MoU, ECI will provide export insurance services to companies licensed by Jafza. It is a result of the shared objectives of Jafza and ECI to solidify the UAE economy globally and strengthen the UAE’s position as the preferred global hub for exports. The pact also aims to drive the expansion and diversification of the UAE economy, as well as ease financial pressure.
Through this collaboration, the two entities will conduct seminars and workshops to inform members about the benefits of trade protection solutions, with a focus on trade credit insurance, surety bonding and trade finance solutions provided by Etihad Credit Insurance. They also intend to assist and sustain members exploring export to foreign countries and sectors, also providing country risk reports in international trade activities.
Underscoring the importance of this strategic agreement in helping these companies gain a competitive advantage in the global markets, Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO of Jafza said: “Our agreement with ECI is significant as it will help boost the export of UAE goods, works, services and the foreign investments of UAE companies. This move will increase cash flow, enable world trade and contribute towards long-term growth. We aim to provide support to companies licensed by Jafza, and assist them to navigate these uncertain times. Owing to the current economic climate due to the global pandemic, we believe that partnerships like these will reinforce business relations and help us safeguard the interests of businesses and investors. Eventually, our ultimate goal is to ensure our customers’ success and we hope this alliance will be a fruitful one as we continue to grow together to create a better future for everyone.”
Meanwhile, Massimo Falcioni, CEO of ECI said: “We are honoured to be able to assist local businesses via this strategic agreement. We are confident that our innovative products will enhance trade and ensure that the UAE remains a leader in the export market despite the current challenging global conditions. ECI remains keen to boost diversification and ensure that the UAE economy thrives in a post-oil era, and our tailored solutions offer protection from risks and business continuity during such unprecedented times.”
ECI was established with a mandate to advance the global competitiveness of UAE exporters. ECI supports UAE firms through its bespoke financial products that guarantee the provision of protection and a competitive advantage in the international market. For one, ECI provides protection against non-payment from buyers who have gone insolvent—covering losses from clients that have failed to fulfill their payment obligations. It also provides additional funding capacity through its strategic partnerships with local and international banks. These institutions will offer loans to UAE businesses, guaranteed by ECI, to secure the funding of the supply chain. Lastly, businesses can also take advantage of ECI’s global network of over 360 million businesses worldwide, as it provides a list of suppliers across the globe who can open new markets as well as be potential customers and suppliers for its products and services.
About Jebel Ali Free Zone (Jafza)
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 USD 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% 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.
About Etihad Credit Insurance
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 as well as support the exporters in the domestic trade 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.
ECI has also been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings.