Etihad Credit Insurance partners with FAB
Etihad Credit Insurance (ECI) has signed a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB) to assist UAE-based exporters and local businesses in managing their trade finance needs and to support their international expansion ambitions.
The collaboration is a step towards supporting local businesses and their capability to trade globally as well as to encourage them to strengthen their position regionally and internationally, in line with the country's diversification strategy. Under the MoU, both the institutions will collaborate in jointly developing products and solutions that will allow UAE-based exporters and local businesses to mitigate commercial and political risks associated with international trade activities while supporting their financing needs. Other areas of cooperation include the provisioning of conventional and Murabaha trade credit insurance, credit risk and supply risk solutions, export and SME financing, factoring, and Letter of Credit confirmations.
According to the UAE Central Bank, real GDP is expected to grow by 4.2 per cent in 2019 as oil and non-oil sectors are projected to grow by 5.2 per cent and 3.7 per cent, respectively. In the third quarter of 2018, the UAE Central Bank reported that non-oil activities showed a resilient non-hydrocarbon sector. The resiliency is mainly due to the recovery in oil prices, in addition to a strong fiscal policy and resilient tourism and tourism-related activities.
Massimo Falcioni, chief executive officer at ECI, said: "Over the years, the UAE's banking sector with its high liquidity, has been growing stronger and showing an increased potential to support the country's economic growth. Our recent partnership with FAB, the UAE's largest bank and one of the world's largest and safest financial institutions, is a major milestone for ECI. This alliance supports ECI's mandate of assisting UAE businesses and exporters in driving further growth and trade activities, as well as to strengthen its commitment to support the country's Vision 2021 programme. Moreover, we are certain that this collaboration, through the use of innovative tools and solutions, will help track and forecast the cash flow needs of UAE-based exporters and local businesses that are looking to expand regionally and internationally."