Abu Dhabi Exports Office (Adex) is making available a Dh550 million funding package to help companies restart exports as the global economy gradually reopens in the wake of the Covid-19 pandemic.
Adex, which was set up last year by the Abu Dhabi Fund for Development to help drive international trade, is also conducting an awareness campaign about the fund. The organisation said on Tuesday that it will co-host a series of forums with Departments of Economic Development and Chambers of Commerce in each emirate explaining how to access it.
“This is not only a difficult time for UAE exporters, but it’s also a challenging time for their overseas buyers,” said Mohammed Al Suwaidi, chairman of Adex's export executive committee and director-general of ADFD.
“Both are dealing with liquidity and cashflow issues, delayed supplier payments and limited access to financing. Adex provides a solution to these challenges that enables both the exporter and foreign importer to quickly and easily fund mutually beneficial transactions,” he added.
Global trade has been hit hard by the restrictions put in place to stop the spread of Covid-19, which has infected about 3.6 million people globally and killed more than 250,000 as of Tuesday, according to Johns Hopkins University, which is tracking its spread. Earlier this month, the World Trade Organisation predicted that global trade would fall between 13 per cent and 32 per cent in 2020, with all regions facing double-digit declines.
“These numbers are ugly – there is no getting around that. But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects,” the organisation’s director-general, Roberto Azevêdo, said.
To access the funding being offered by Adex, overseas buyers need to go through a certification process. Once qualified, they can make a purchase from a UAE-based company and the export office will provide the initial payment to the UAE company for the goods or service provided. This will help local firms’ international marketing and sales efforts, providing a source of cashflow to reestablish trade lines.
“Working directly with chambers of commerce and the government entities that make up our national export community, we can ensure our national companies are fully aware of how to access and use the services available to them to build their business during this challenging time and beyond,” said Adex’s acting director-general, Saeed Al Dhaheri.