UAE: Two agencies team up to back exports through Islamic trade credit insurance
Source: Middle East Insurance Review | Jul 2020
Etihad Credit Insurance (ECI), the UAE’s federal export credit company, has partnered with Dubai Islamic Economy Development Centre (DIEDC) to boost UAE exports through shariah-compliant export credit solutions.
In an MoU signed by DIEDC CEO Abdulla Mohammed Al Awar and ECI CEO Massimo Falcioni, the two organisations agreed to form a committee that will implement initiatives aimed at shoring up the UAE’s shariah-compliant exports. The number of members, the structure of the committee and the means of financing, as well as the schedule of meetings, the working mechanism and the decision-making process will be finalised by ECI and DIEDC.
As part of the agreement, the federal export credit company will support DIEDC’s partners through its trade credit services that can significantly augment their shariah-compliant exports. The two organisations will also partner with Islamic banks and exporters in projects that require export financing, structured trade finance, project finance, as well as supply chain finance.
Furthermore, the partnership is mandated to enhance awareness of Islamic trade credit and political risk solutions and financing structures (based on takaful) as well as to examine how ECI can provide DIEDC’s business partners with risk mitigating tools. In doing so, the two entities are seeking to drive the global competitiveness of these businesses to help them enhance their export competencies and penetrate new markets.
On its part, ECI will participate in conferences, workshops, training courses and activities focused on exports and Islamic finance organised by DIEDC. In addition, ECI is to have access to the Centre’s reports and publications.
The two entities are mandated to cooperate with strategic stakeholders in the UAE to launch initiatives that support halal products. In addition, they are to jointly host events that highlight the advantages of investing in the Islamic economic sectors. M