$200 million fund allocation for ADEX approved by ADFD for export financing
The Abu Dhabi Fund for Development (ADFD) Board of Directors approved the allocation of $200 million for Abu Dhabi Exports Office (ADEX) to accommodate export financing that will help spur the growth of exports of UAE national companies. The 2021 budget allocation increased by 33.3 percent over the 2020 export development budget and will be used to directly support transactions with overseas buyers of goods and services of UAE origin while contributing to the expansion of the national export economy.
Access to export financing will also contribute to advancing the new Operation 300bn and "Make It In The UAE" comprehensive program to more than double the value of the output of the national manufacturing and industrial sector in the next 10 years.
Providing qualified overseas buyers with access to competitive export financing gives UAE companies a powerful strategic advantage, particularly in the current economic environment when access to commercial financing is more challenging and expensive in many emerging global markets. It also reduces the risk and financial exposure of UAE exporters on international transactions, enabling companies to safely expand into strategic growth markets.
HE Mohammed Saif Al Suwaidi, Director General of ADFD and Chairman of the Executive Committee of ADEX, said: “The newly announced Make It In The UAE initiative reinforces the strategic importance of our manufacturing and industrial sector to our future sustainable economic development strategy. The growth and diversification of our manufacturing capabilities will bring with it the opportunity to continue to expand the UAE export economy.”
According to Al Suwaidi, UAE manufacturers can leverage the financial support and protection of ADEX to grow their international operations at a time when overseas buyers continue to face supply chain disruption and liquidity challenges and immediately contribute to our national Operation 300bn goal.
ADEX was established by ADFD to provide loans and credit guarantees to foreign importers of non-crude sector goods and services from UAE companies, with payment made directly to the UAE national company upon successful delivery on contract terms. Over the past year ADEX worked together with a wide range of strategic partners across the UAE to educate business leaders on how to access and leverage export financing as a catalyst to accelerate economic recovery in the wake of the global lockdown and massive supply chain disruptions.