Etihad Credit Insurance (ECI), the UAE’s federal export credit agency, signed an agreement with the Export Credit Guarantee of Egypt to bolster bilateral trade and economic co-operation.
As part of the agreement, the two entities will provide a broad range of trade credit insurance to support businesses in both the countries and mitigate risks owing to various political, commercial and non-commercial reasons, ECI said on Sunday.
“The UAE has been maintaining a strong, historical bilateral relationship with Egypt since its formation, and the non-oil trade relations between these regional powers continue to improve, riding on a host of strategic collaborations,” said Massimo Falcioni, chief executive of ECI.
“Deepening our existing partnership, this reinsurance agreement will give rise to unparalleled trading opportunities for local businesses to improve their regional and global competitiveness.”
Established in 2018, ECI provides export guarantees and trade insurance for UAE companies to minimise payment risks associated with exporting.
It has partnerships with local and international banks that offer loans to UAE companies to fund exports to overseas buyers, with ECI providing insurance.
“We believe this reciprocal reinsurance partnership with Etihad Credit Insurance will usher in a new era of economic prosperity, making a huge difference in our businesses transactions through a wide range of credit insurance solutions offered by both ECAs (export credit agencies),” said Mohamed Azzam, managing director and general manager of Export Credit Guarantee of Egypt.
The UAE and Egypt enjoy a robust trade relationship. Non-oil trade between the two countries rose 14.34 per cent to Dh25.8 billion ($7.02bn) in 2020, ECI said, citing data from the UAE’s Ministry of Economy.
The UAE is Egypt’s second-biggest trading partner in the Gulf region and ninth in the world, and their non-oil trade exchange doubled four times from 2010 to 2019, according to ECI.
“With the UAE and Egypt’s shared historical relations, both countries have benefitted from mutual agreements that have helped heighten regional security and fortify sustainable development across Arab countries,” ECI said.
The ECI issued Dh3.4bn worth of revolving credit guarantees as of September 2021. The volume is three times higher than the guarantees issued in the previous year for the same period.
ECI has signed similar deals with a number of countries in recent times including Israel, Indonesia and Greece, among others.
