Enjoy our faster App experience

Adex to boost non-oil exports, competitiveness

Adex to boost non-oil exports, competitiveness

Ashwani Kumar

Published: Mon 9 Sep 2019, 5:23 PM

Last updated: Mon 9 Sep 2019, 7:49 PM

Abu Dhabi Exports Office (Adex), a first such initiative in the UAE, was launched on Monday to provide credit facilities in the form of loans and guarantees to foreign buyers seeking to import goods and services from the UAE.
Adex, owned and managed by Abu Dhabi Fund for Development (ADFD), aims to build a diversified and sustainable economy through financing of non-oil exports, facilitate entry into new markets and enhance competitiveness, top ministers and officials said in Abu Dhabi.
Adex beneficiaries will be foreign buyers, foreign government and related entities, institutions and companies from public and private sector.
Adex offers three forms of services - indirect financing i.e. by opening credit lines with financial institutions to provide loans to importers to purchase goods from a UAE source. It will be revolving credit facility with financing value of up to 100 per cent of the export contract value. Second is direct financing, i.e. non-revolving loans up to 90 per cent of the export contract value. Third is direct financing through guarantee to a financial institution that extends loan to an importer. The financing value is up to 90 per cent of the export contract value.
His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and Chairman of the Board of Directors at the ADFD, said the Adex will provide national companies with the opportunity to explore promising markets with the aim of enhancing the availability of UAE exports worldwide.
His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, inaugurated Adex and said it represents a monumental leap in the implementation of the UAE's economic diversification policies, boosting the national economy and reducing dependence on oil as a source of income.
Mohammed Saif Al Suwaidi, Director-General of ADFD, said Adex is unique programme which will enable the country to compete with others. "The UAE is located in a very strategic area. We have all the logistics and sophisticated ports," he said at the press conference.
He noted the financing does not apply to crude oil exports.
"Adex seeks to expand the variety of UAE-made products and services for export, and raise the volume of national exports through providing financing and guarantee facilities."
Another official noted that the fund with ADFD is 'available to be used' for Adex programme.
ADFD's total capital is Dh16 billion. So far, ADFD has extended financial resources and overseen provision and management of Dh89 billion towards financing hundreds of projects around the world.
- ashwani@khaleejtimes.com

More news from Local Business