A reinsurance agreement was signed by Etihad Credit Insurance (ECI), the UAE Federal Export Credit Firm, and UK Export Finance (UKEF), the UK's export credit agency, to improve the productivity, size and reach of the export industry of both countries through strategic collaboration and cooperation.
The deal, signed by ECI CEO Massimo Falcioni and UKEF CEO Louis Taylor, aims to provide a comprehensive turnkey forum that can be used by both sides to open new market prospects and identify areas for potential cooperation to promote a greater UAE-UK trade partnership.
ECI and UKEF have entered into this agreement to work towards strategic collaboration in areas such as the discovery of shared opportunities for insurance undertakings, reinsurance undertakings, co-insurance undertakings for the sale of products to third countries; investment and services to assist and help insured exporters; facilitation of access for small and medium-sized enterprises; mutual sharing of good practices; organisation of joint events; and Export communities in both countries are projected to benefit from this relationship, as it seeks to promote access to a variety of export credits, as well as finance and investment insurance products.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Deputy Chairman of the Board of Directors of Etihad Credit Insurance, stressed the importance of this strong agreement on the export industry of the UAE, saying: "Over the years, the UAE and the United Kingdom have already had strong trade ties, and this agreement represents the commitment of both countries to boost the comparative edge of both countries. With our deep faith that this will further help ECI drive UAE companies into greater heights, we are delighted to enter into this relationship with UKEF. This partnership would be instrumental in promoting, in line with the vision of our wise leaders, the national economic non-oil diversification programmes of the UAE.
Graham Stuart, Minister of Exports of the United Kingdom, said: "This alliance is a boost to our trading relationship and to the two countries' businesses. The UAE is diversifying its exports from oil and gas to green energies and its ambitions to reduce its reliance on fossil fuels are consistent with our own. As the world's fifth largest exporter, we are committed to helping companies across the UK access financing that they need to take advantage of the fresh possibilities UKEF has opened up across the globe."
For his part, ECI CEO Massimo Falcioni said that the partnership is yet another testament to ECI's dedication to continuously improving and building partnerships to help provide companies and exporters with the utmost support. "These kinds of partnerships help UAE exporters secure their entrance into international markets, protect their cash flow and provide their lenders with guarantees, further enhance their presence in the global arena and place the nation as a hub for global trade and industry."
The UAE is the fourth largest non-EU export market in the United Kingdom and is the main trading partner of the United Kingdom in the region, accounting for 40 percent of GCC-UK trade. Data from the UAE Ministry of Economy reveals that in 2019, non-oil international trade between the UAE and the UK was estimated at Dh36.6 billion, of which 27% were non-oil exports and re-exports, respectively at Dh2.1 billion and Dh7.7 billion.