The Export Credit Insurance Company of the Emirates (ECIE) which went on stream in the 4th Quarter of 2008, has recorded a better-than expected start to its operations.
ECIE was set up by the Dubai Government as a result of H.H. Sheikh Mohammed Bin Rashid Al Maktoum’s vision, in his capacity as Vice President and Prime Minister of the UAE, and Ruler of Dubai - to help UAE-based companies make use of opportunities to grow their exports safely.
ECIE’s CEO - Eng. Saed Al Awadi explained that the Middle East and Africa have grown to be very important markets for both regional and global businesses, with the average annual growth in insured risks in the region over the last 4 years estimated at around 45%.
“In our first three months of operations, we attracted a great deal of interest from UAE exporters, and the 1st Quarter of 2009 has been even better.
ECIE was set up primarily to help companies increase their export business by providing them with trade credit protection which will allow them to manage their commercial and political risks better, and thereby safeguard their balance sheets and increase profitability. Insured companies are in an ideal position to target new export markets or sell to new buyers, and in turn contribute to the UAE’s GDP growth,” he added.
“Our objectives are three-fold,” Eng. Al Awadi explained. “We are making Credit Insurance solutions available to manufacturers, traders and service providers across the business spectrum, and in doing so; we will help facilitate the nation’s prosperity through sustainable GDP growth over the long term and; create a level playing field in the domestic Credit Insurance market.
“What makes us unique is that we are working very closely with the Dubai Export Development Corporation, which through its wide array of products and services, is instrumental in promoting export trade out of the UAE. Besides, we have access to a global database that contains information on no fewer than 50 million companies; and this puts us in an ideal position to cover a company’s export and domestic sales against non-payment of receivables by its buyers.
“Several factors are currently weighing on the Global economy, while the UAE’s attraction as a business location over the next five years will only continue to increase, thus making it a preferred base for several companies, either through direct investment or technology participation. A critical aspect of economic growth is the contribution of SMEs, an important business segment to which we are fully committed.
“The world’s leading credit risk underwriters already have a presence in some form or another in this region, and this emphasises the increasing flow of trade
into and out of the Middle East and Africa. Moreover, extensive growth in exports means more businesses need protection against defaulters, especially in the light of the current global economic crisis that has made trade much riskier,” Eng. Al Awadi concluded.
ECIE’s partnerships include those with Coface – the global expert in credit risk analysis and trade receivables management, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) – the globally acclaimed Islamic multilateral based in Saudi Arabia and, the well-reputed Arab Investment & Export Credit Guarantee Corporation (DHAMAN) based in Kuwait.
