The initial indicators of the country’s non-oil foreign trade during the
past months showed significant growth, specifically in non-oil exports,
which increased by over 17 per cent during the first quarter of 2022.
This was revealed by Abdullah bin Touq Al Marri, Minister of Economy on Sunday.
Etihad Credit Insurance (ECI), the UAE Federal export credit company,
held its second board of directors meeting in 2022, chaired by Abdullah
bin Touq Al Marri, Minister of Economy and Chairman of the Board of
Directors of ECI.
The virtual meeting discussed key economic performance indicators until
May this year, along with its achievements in promoting domestic,
regional, and international trade in terms of strengthening the UAE’s
economic diversification, industrial, and non-oil export strategies.
“This positive performance is achieved against the backdrop of the
current global economic challenges. The Ministry of Economy intends to
further diversify the UAE’s export markets during the next phase of its
growth strategy, and Etihad Credit Insurance plays a crucial role in
supporting this mission in cooperation with its various partners
involved in the development and its promotion of national exports at the
federal and local levels.
During the meeting, he applauded ECI’s management and outstanding
achievements in the first five months of 2022 with substantial
contributions to the UAE’s economy, active participation in government
initiatives, and its strong resolve to support UAE businesses and boost
their competitiveness in foreign markets.
In line with the UAE leadership’s wise directives, Etihad Credit
Insurance works under the comprehensive vision for the national economy
that seeks to enhance economic diversification efforts and develop
national non-oil exports. Through various undertakings, collaborations
and trade credit solutions, ECI has supported SMEs by opening new
markets and improving their competitiveness to support economic
diversification policies and achieve the UAE vision and directions for
the next stage of development,” Al Marri added.
As of May 2022, ECI enhanced the competitiveness of the UAE’s non-oil
trade and export by issuing 7,307 revolving credit guarantees with a
total guaranteed exposure of Dhs 4.8 billion, equivalent to Dhs 14.4
billion worth of short-term insured non-oil trade to over 111 countries.
Benefiting 15 growth sectors, these secured guarantees covered Dhs 6.7
billion in international trade, Dhs 7.6 billion in domestic trade, Dhs
1.2 billion in medium/long-term trade and Dhs1.3 billion in political
risk insurance.
The top sectors that benefited from ECI’s support include logistics (18
per cent), electrical equipment and electronics (18 per cent), machinery
and equipment (16 per cent), metal industry (12 per cent),
petrochemicals and chemicals (9 per cent), heavy industry (7 per cent),
financial services and banks (6 per cent), pharma and healthcare (4 per
cent), food and beverage (4 per cent), among others.
The breakdown of secured non-oil trade that ECI facilitated for each
emirate for the past five months is as follows: Abu Dhabi (Dhs 1.9
billion); Dubai (Dhs 9.9 billion); Sharjah (Dhs1.5 billion), Ras Al
Khaimah (Dhs504 million), Fujairah (Dhs 102 million), Ajman (Dhs 282
million), Umm Al Quwain (Dhs 159 million).
Also, the key destination countries for UAE’s exports and re-exports
protected by ECI’s trade insurance coverage stretched across UAE,
Kingdom of Saudi Arabia, Egypt, India, United Kingdom, Oman, Kuwait,
United States, Italy, and Ghana.
At the meeting, the board had a strategic dialogue on ECI’s strategy for
2022-2026, which aims to develop non-oil exports to the UAE and provide
solutions to challenges related to trade credit insurance or project
financing solutions with a focus on SMEs and improving their export
opportunities. And by launching numerous initiatives and unlocking
bespoke credit insurance and finance solutions, the strategy also
targets to intensify its efforts to realise the nation’s foreign trade
and industrialisation ambitions.
The board also explored ways to further develop risk management, compliance, and internal audit organisation.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and
Deputy Chairman of ECI Board of Directors, said: “The UAE takes it a
priority to meet the varying needs of national companies and exporters,
as well as reinforce the country’s leading position as a regional and
international hub for re-exports. Etihad Credit Insurance’s renewed
strategy, which is aligned with the UAE’s national agenda for non-oil
export and its vision for the next 50 years, aims to ensure long-term
and sustainable growth in the country. Based on this, ECI is focused on
supporting sectors that diversify the economy towards non-oil GDP and
bolstering sectors that are a national priority for economic
self-reliance and those that offer stable growth for the future.”
Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of
Industry and Advanced Technology, said: “Etihad Credit Insurance is a
key partner in our efforts to advance the manufacturing sector and more
than double its contribution to the UAE’s GDP. With its innovative range
of export insurance and financing solutions that help large corporates
and SMEs to expand, diversify and improve operational efficiency, they
are integral in the nation’s comprehensive industrial strategy Operation
300bn and Make it in the Emirates.”
UAE non-oil foreign trade during past months shows huge growth
