DUBAI / WAM
The United Arab Emirates and the Kingdom of Saudi Arabia strengthen their economic partnership to enhance the trade, diversify and create opportunities for the businesses and people in both the countries.
Etihad Credit Insurance (ECI), the UAE Federal export credit company has partnered with the Saudi Fund for Development (SFD), for financing and providing credit insurance to protect non-oil exports of the UAE and Saudi Arabia. This collaboration marks a favourable step in strengthening the alliance between both countries, one that will enhance the emirate’s global competitiveness and widen the potentialities and opportunities for local businesses as well as the export and trading community.
The partnership between ECI and SFD was formalised in the presence of other senior officials from both the organisations.
Stressing on how the collaboration between ECI and SFD could be beneficial for Saudi exporters and UAE-based businesses, Massimo Falcioni, CEO of ECI, said, “ECI’s partnership with SFD is forming when UAE-Saudi Arabia relations are strengthening. The year 2020 has been announced as a ‘year of achievement’ by both the countries, aiming to work together to become one of the top economies in the world.
“ECI believes this partnership will boost the plans of both the economies. We are certain that the association with SFD will prove to be beneficial for UAE-based businesses as they will have access to new market, potential business market intelligence supported with ECI’s bespoke trade credit solutions to diversify their businesses.”
Dr. Khaled bin Sulaiman Al Khudairy, Vice Chairman and Managing Director of SFD, said, “We are delighted to have collaborated with ECI. Since our launch in the 1970s, SFD has financed programmes in different economic sectors including education, health, transportation, agriculture, energy and water.
Among SFD’s main objectives are to participate in financing to uplift projects in developing countries by granting them necessary loans, technical aids required for financing studies and institutional support as well as financing and guaranteeing the national non-oil exports. We believe our alliance with ECI will prove to be beneficial for the SME industries that will help to surpass the challenge of funds faced by SMEs.”
The key highlights of the alliance between the two institutions include sharing of work streams that include insurance, reinsurance and collections cooperation; Commercial information and credit opinion sharing; cooperation in technical training programmes; Trade promotions; SME programmes, among others.
The UAE and Saudi Arabia’s strong partnership is well evident in their long-term agendas UAE’s Vision 2021 and Saudi Vision 2030 that aim to promote non-oil diversification and enhance economic growth and investment in the region.
According to the UAE Ministry of Economy’s ‘Non-Oil Foreign Trade Relation Report between the UAE and Saudi Arabia’, the UAE’s non-oil export and re-exports trade volume to Saudi Arabia stood at AED79.6 billion in 2018 up from AED53.9 billion in 2017. The report also stated that the UAE’s trade volume to Saudi Arabia has increased by 32 percent in 2018.