ADFD raises support for UAE exports by 33.3% to Dh735m

The Abu Dhabi-based fund approves a higher budget for Adex to spur economic diversification

Foreign direct investment into the UAE increased 44 per cent to Dh73bn last year. Victor Besa / The National

The Abu Dhabi Fund for Development allocated Dh735 million ($200m) in export support for this year to spur economic diversification and win over buyers in target markets.

The fund approved an additional allocation of Dh184m, up 33 per cent from a year ago, to the budget of Abu Dhabi Exports Office, or Adex, the Abu Dhabi Government Media Office said in a statement on Sunday.

The money will be used to support transactions with overseas buyers of UAE goods and services, in addition to boosting the country's export economy.

“National export companies 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,” said Mohammed Al Suwaidi, director general of the fund and chairman of Adex’s executive committee.

Adex's acting director general Saeed Al Dhaheri said the UAE's successful vaccination campaign and the economy's clear signs of growth put exporters in a strong position to succeed.

“We are very confident that our national export economy will continue to grow and prosper in 2021 and long into the future,” he said.

He said Adex is encouraging businesses to partner with the export office to boost their appeal to overseas buyers and win market share in key markets.

Adex was set up by the ADFD to provide loans and credit guarantees to foreign importers of non-oil goods and services from UAE companies, with payments made directly to the local company upon delivery.

In its first full year of operation in 2020, it committed Dh500m to help UAE exporters meet the procurement needs of foreign buyers.

The UAE is backing local manufacturing to help diversify its economy, attract foreign investment and create high-skilled jobs.

The country plans to increase the manufacturing sector's contribution to gross domestic product from the current Dh133 billion to Dh300bn over the next decade.

The sector produces a diverse range of goods – from aircraft parts to bathroom fittings.

Many of the established producers trace their origins back to the 1970s and have set up shop across the GCC.

“With competitive national products we take pride in, our mission is to double our success, increase the in-country value and build an export ecosystem that enhances the global competitiveness of local products,” said Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, last week.

The Abu Dhabi Department of Economic Development's Industrial Development Bureau signed an agreement in February to help local companies play a bigger role in international trade.

The UAE, the second-biggest Arab economy, has taken several steps to support local exports during the coronavirus-induced slowdown.

The Etihad Credit Insurance, the Emirates’ federal export credit agency, unveiled measures last April to support affected exporters and ease payment and supply chain disruptions.

The ECI extended Dh420m worth of trade credit support to small and medium enterprises in the first 11 months of 2020 to boost their liquidity positions.