PriyaPatelTLDR:
Etihad Credit Insurance (ECI) and DP World have announced that the trade finance lending facilitated by DP World’s financing arm has exceeded AED1bn, focusing on SMEs to help diversify the UAE’s economy. ECI provides risk cover for transactions, aiming to boost exports to key markets like India, Turkey, and Indonesia. The partnership aims to reach US$1bn in ECI-insured trade finance by the end of next year.
Summary:
Etihad Credit Insurance (ECI) and DP World have teamed up to enable trade finance lending exceeding AED1bn, with a focus on SMEs. The partnership aims to diversify the UAE’s economy away from oil by providing support to smaller companies. Transactions facilitated by DP World Trade Finance include exports of various commodities, with a significant portion coming from SMEs.
DP World Trade Finance’s board director, Raj Jit Singh Wallia, highlighted the importance of supporting SMEs in global trade, as only 10% of global trade finance reaches this sector. The partnership with ECI aims to bridge this gap and provide SMEs with access to trade finance by mitigating risks that may deter larger financial institutions.
DP World’s unique position in overseeing the physical movement of goods and long-standing customer relationships allows them to mitigate risks like fraud and money laundering. ECI provides non-payment and geopolitical risk cover for transactions, facilitating trade to markets like India, Turkey, and Indonesia.
The announcement comes as the UAE’s non-oil foreign trade volumes hit a record high. ECI’s CEO, Raja Al Mazrouei, emphasized the agency’s focus on guaranteeing against risk to create market opportunities for UAE companies. DP World aims to lower borrowing rates for borrowers in emerging economies, leveraging their experience and data to assess risks accurately.
The partnership between ECI and DP World aims to continue supporting SMEs and diversifying the UAE’s economy by boosting exports to key markets. With a target of reaching US$1bn in ECI-insured trade finance by the end of next year, the collaboration seeks to enhance trade opportunities for UAE companies and foster economic growth.
