New MoU between Ministry of Industry and Advanced Technology and Etihad Credit Insurance offers financing options
The Ministry of Industry and Advanced Technology (MoIAT) and Etihad Credit Insurance (ECI), the UAE federal export credit company, recently signed a Memorandum of Understanding (MoU) to offer a package of financial incentives to support UAE exports, offer financing facilities for manufacturers and advanced technology projects, guarantees for industrial loans, an umbrella insurance for small and medium enterprises (SMEs), and assistance in securing intellectual property rights for startups.
As part of the partnership, the Ministry seeks to promote ECI’s trade solutions including trade credit insurance, trade finance, export finance, project finance, loan repayment, equity insurance for startups and micro-SMEs, and ‘Click & Cover’ online solution for SMEs – through the Make it in the Emirates campaign. ECI will contribute to attaining Operation 300bn’s goal of enhancing the competitiveness of UAE industrial companies in international markets.
The collaboration will also involve other financial institutions and development banks in improving the current offerings and developing innovative products that meet the needs of the industrial and advanced technology sectors.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, said: “The partnership between the MoIAT and ECI is an important step in boosting the global competitiveness of the UAE’s industrial sector. The array of financial incentives and facilities offered through the new partnership will help stimulate innovation and entrepreneurship among the UAE’s leading industrialists as they seek to fully integrate advanced technologies and Fourth Industrial Revolution (4IR) solutions into their production lines.”
He added that the agreement is fully aligned with the UAE leadership’s vision of making the industrial sector a key driver of sustainable future economic growth. “It will also help forge new economic sectors and consolidate the UAE’s position as a global hub for innovation and a leader in industries of the future” he added.
As of May 2021, ECI enhanced the competitiveness of the UAE non-oil trade and export by issuing 4,039 revolving credit guarantees in excess of AED 2.5 billion, equivalent to AED 7.5 billion worth of non-oil trade to over 85 countries and eased trade and project finance through guarantees for AED 1.16 billion. The sectors that benefited from ECI's guarantees include cable, steel, petrochemicals, building materials, packaging, automotive, energy, utilities, healthcare, and food.