Abu Dhabi (Union)
The Ministry of Industry and Advanced Technology and the Union Export Credit Company have signed a memorandum of understanding to support the performance and competitiveness of the industry and advanced technology sector in the UAE.
The memorandum was signed by Omar Suwain Al-Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, and Massimo Falcioni, CEO of Etihad Export Credit, in the presence of His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Vice Chairman of the Board Management of the Union Export Credit Company.
Under the agreement, products and facilities that support the industrial sectors in the country will be provided, especially the priority sectors identified by the strategy of the Ministry of Industry and Advanced Technology “Project 300 billion”, provided that the company will form a permanent working team to ensure the implementation of initiatives in cooperation with the Ministry of Industry and Advanced Technology in a manner that serves growth and prosperity Industry and advanced technology sector in the UAE.
The UAE leads a qualitative model of providing financing solutions with low financial risks, to invest in emerging companies, as the agreement includes the establishment of cooperation that allows industrial investors to invest in the shares of emerging companies, with lower risks, which was a concern for investors earlier, Especially when dealing with entrepreneurs and emerging companies, due to the high risks.
Under this cooperation, the Ministry of Industry and Advanced Technology will promote the financing solutions provided by the Export Credit Union, especially trade credit protection, trade finance, export finance, project finance, loan repayment guarantee program, property rights insurance program for start-ups, and the “Small Business Protection” service. and medium”, while the Export Credit Union will contribute to achieving the objectives of the “300 billion project” by enhancing the performance and competitiveness of companies and manufacturers in the UAE towards international markets.
ECI will establish a permanent working group in order to continuously provide initiatives in cooperation with the Ministry of Industry and Advanced Technology. These efforts will involve financial institutions and banks to enhance existing financial services, in addition to developing new and innovative solutions and facilities to support the industrial sector and the advanced technology sector.
His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said: It is in line with the forward-looking vision of the wise leadership, which supports the strategy of industry and advanced technology, and is keen to stimulate and develop the industrial and advanced technology sector in the country, given its importance and pivotal role in enhancing the competitiveness of national industries, in a way that supports Our national economy and sustainable development plans, and enhance the country’s position as a global destination for pioneering the industries of the future, this cooperation would support the work of the industrial sector and advanced technology, and stimulate the performance of companies and industrial institutions.
His Excellency added that cooperation with a major national institution such as the Export Credit Union will support the objectives of enhancing the competitiveness of the national industry, and the access of our products to new global markets, and will facilitate the work of priority industrial sectors, in addition to focusing on vital sectors that develop competitive advantages for the national product, and make a country The UAE is a regional and global center for stimulating innovation and adopting advanced technology, which will support the country’s leadership in the industries of the future.
Massimo Falcioni, CEO of ECI, said: “This cooperation with the Ministry of Industry and Advanced Technology is an important step in achieving the UAE’s vision of strengthening the industrial sector and attracting investment. ECI continuously supports the growth of UAE companies through a wide range of export credit insurance, financing and investment products. These innovative solutions will play a vital role in supporting the “300 billion project” and the “Make in the UAE” initiative.
Until May 2021, ECI supported the non-oil trade of the UAE by providing 4,039 revolving credit guarantees worth more than 2.5 billion dirhams, equivalent to 7.5 billion dirhams as guarantees for non-oil exports to more than 85 countries, and provided guarantees for trade finances amounting to 1.16 billion. dirhams. The companies benefiting from the guarantees provided by ECI operate in the cable, iron, petrochemical, building materials, packaging, automobiles, energy, services, health care and food sectors.
Despite the economic challenges posed by the COVID-19 pandemic, ECI continued to boost the UAE’s trade and exports.
“Made in the UAE”
His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Vice Chairman of the Board of Directors of Etihad Export Credit Company, said: “This partnership between the Ministry of Industry and Advanced Technology and Etihad Credit Company will positively and significantly affect the empowerment of industrial sectors in the UAE. Facilitating companies’ access to trade and project financing would contribute significantly to supporting the “300 billion project” and the “Make in the UAE” initiative, and would double the value of the national industrial sector’s output in the next ten years. We also believe that this cooperation will play a major role in enhancing the confidence of Emirati companies, which in turn will increase the contribution of the industrial sector to the non-oil GDP.”