Etihad Credit Insurance, the federal export credit agency of the UAE, is partnering with the Dubai Islamic Economy Development Centre to raise the country’s exports through Sharia-compliant solutions.
The two organisations will team up with Islamic banks and exporters in deals that require structured trade and export, project and supply chain finance, ECI said on Saturday.
“Together with DIEDC, we aim to not only strengthen the efforts of halal exporters in the country, but also to facilitate the development of new products that will set benchmarks across sectors and contribute significantly to positioning the UAE as the global leader in the Islamic economy,” said ECI chief executive Massimo Falcioni.
The DIEDC is a government body set up by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, in 2013 to oversee and promote the emirate as the global capital of the Islamic economy.
Worldwide spending in Islamic ethical consumption sectors is projected to increase 45 per cent from 2018 figures to reach $3.2 trillion (Dh11.75tn) by 2024, according to a survey by DinarStandard.
The UAE was the market leader in halal food, modest fashion, pharmaceuticals, cosmetics and media and recreation trends, the US company said.
The partnership between the DIEDC and ECI will increase awareness about Islamic trade credit and political risk solutions and financing structures based on takaful – Sharia-compliant insurance.
It will also examine how the ECI can provide the DIEDC’s business partners with risk-mitigation tools.
“Through this strategic partnership with [the] ECI, DIEDC seeks to create more opportunities in the Islamic economy space for UAE companies engaged in exporting Sharia-compliant products, and to attract more export-focused investments,” said Abdullah Mohammed Al Awar, the centre’s chief executive.
“This MoU [memorandum of understanding] opens new global markets for high-quality Sharia-compliant products from the UAE that are already in great demand for complying with best-in-class standards.”