The UAE and India’s export credit agencies signed a new agreement aimed at boosting trade ties between the two countries.
As part of the deal, Etihad Credit Insurance and India's Export Credit Guarantee Corporation will cooperate in exploring mutual opportunities for insurance, reinsurance and co-insurance services for the export of goods in a third country as well as support insured exporters with investments, ECI said in a statement on Tuesday.
The two entities will also collaborate in facilitating market access for small and medium enterprises.
“This MoU [Memorandum of Understanding] will bring about an important mutual exchange of export credit solutions and financing that will benefit the export community in both countries,” Massimo Falcioni, chief executive of ECI, said.
Bilateral trade between the UAE and India is estimated at $60 billion, ECI said, quoting data released by India’s Ministry of External Affairs in February. The UAE is India’s third-largest trading partner and second-largest export destination.
The UAE exported $10.9bn worth of crude oil to India in the 2019-20 period and non-oil exports and re-exports between the two countries reached more than Dh24bn and Dh30bn, respectively. India is the UAE's second-biggest non-oil trade partner, data from the UAE Ministry of Economy shows. Apart from oil, the UAE exports precious metals, minerals, chemicals and other products to India.
The new deal will “enhance our participation in joint projects thereby giving business access to a wide range of export credit solutions offered by ECI and ECGC”, M Senthilnathan, chairman and managing director of ECGC, said.
ECI also signed a similar agreement with Israel's export credit agency Ashr'a earlier this month.
Established in 2018, ECI provides export guarantees and trade insurance to UAE companies to minimise some of the payment risks associated with exporting.
The UAE is planning major investments in India's mega food parks and logistics infrastructure as both countries strive to secure dependable food supplies, Ahmed Al Banna, ambassador of the UAE to India, said earlier this month.
UAE companies are expected to invest $7bn in India over the next three years as part of the UAE-India Food Corridor project.