ABU DHABI: Etihad Credit Insurance (ECI), the UAE Federal export credit company, recorded a remarkable eight percent annual increase in its credit coverage within the Emirate of Abu Dhabi, reaching a total of AED 1.4 billion in the first eight months of 2024.

The financial services industry continues to lead in securing ECI’s credit support in Abu Dhabi, accounting for 50.6 percent of the total coverage. This was followed by the F&B sector, metals, paper manufacturing, packaging, and electronics and cables industries, accounting for 14 percent, 10.5 per cent, 10.4 percent, 6.6 percent, and 2.6 percent, respectively. During this period, ECI also witnessed a 24 percent rise in the issuance of insurance documents within the emirate.

In this year alone, the company has attained total credit coverage worth AED 10.6 billion in the UAE, expanding at a growth rate of 10 percent annually, with a 16 percent increase in insurance document issuance. Additionally, the financial services sector topped the list of industries benefiting from ECI's nationwide coverage, accounting for 21.36 percent, followed by logistics, reinsurance, information and communications technology (ICT), chemicals, and food and beverages industries, constituting 14.63 percent, 10.65 percent, 10.01 percent, 7.78 percent, and 7.45 percent, respectively.

Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology and the ECI’s Board member, underscored the UAE’s commitment to fostering a diverse, resilient and adaptable economic model, under the visionary and forward-thinking guidance of the leadership. The UAE also maintains robust trade cooperation with its strategic partners, particularly those that have entered into a Comprehensive Economic Partnership Agreement (CEPA). Such a strategic approach drives trade flow, promoting non-oil trade as a key facilitator of economic growth.

He said: “Despite the challenges in some global markets, the foreign trade of the Emirate of Abu Dhabi has succeeded in continuing the growth, leveraging the momentum in the country’s non-oil foreign trade of both goods and services. As a result, in 2023, the Abu Dhabi foreign trade sector achieved an exemplary valuation of AED 3.5 trillion.”

He highlighted that the rapid growth can be attributed to several factors, such as strategic initiatives aimed at bolstering non-oil sectors, with a focus on driving industrial growth. “Such initiatives align with goals outlined in the strategy of the Ministry of Industry and Advanced Technology (MoIAT) and its vision to empower Emirati industries, enhancing their competitiveness and ability to export, while establishing an integrated industrial system. Furthermore, the ‘Make it in the Emirates’ initiative plays a crucial role in driving industrial growth and empowerment by promoting local products and embracing digital transformation as well as innovations of the Fourth Industrial Revolution. The MoIAT will continue to collaborate with partners in both public and private sectors to empower the domestic industrial sector and enhance its contribution to the nation’s Gross Domestic Product (GDP). We are also committed to achieving self-sufficiency in manufacturing, driving sustainable knowledge-based economic growth, and enhancing the competitiveness of Emirati products in global markets,” Al Suwaidi added.

In the first half of 2024, the UAE’s non-oil foreign trade continued to grow, achieving a record valuation of AED 1.4 trillion, with non-oil exports growing by 25 percent. These exports constitute 18.4 percent of the total foreign trade and the overall national foreign trade expanded at an annual growth rate of 11.2 percent, surpassing the global average growth rate of 1.5 percent. Moreover, the total valuation of re-export operations also reached AED 345.1 billion in the first half of 2024.

Raja Al Mazrouei, the CEO of ECI, underscored the vital role of public-private partnerships in driving the growth of foreign trade, exports, and re-exports from Abu Dhabi. The remarkable growth is also driven by strategic initiatives of the UAE to bolster the national economy's sustainability and diversification, in line with the leadership’s vision.

Al Mazrouei added, “At Etihad Credit Insurance, we are led by the ambitious vision to achieve a seven-fold increase in our non-oil GDP contribution by 2031. We also aim to promote further expansion of our credit coverage facility which currently caters to 17 different sectors, across 110 countries, having expanded 21 times over the last five years. However, our primary focus will be on driving non-oil exports and foreign trade, while elevating the reach and competitiveness of products manufactured by UAE-based companies. We hope to continue empowering local companies by offering credit solutions, financing options, and risk management services, which will enable them to expand into global markets.”

The growth of non-oil exports from Abu Dhabi signifies the Emirate’s growing stature as a leading incubator for businesses, offering an environment conducive to the growth of diverse commercial ventures and business activities. Moreover, Abu Dhabi’s eminence as an ideal destination for foreign investments in the industrial and production sectors, reflects the Emirate’s pioneering position in the global trade landscape and its position as an international hub for transforming talent and innovative ideas into successful enterprises. This remarkable development is a result of strategic initiatives implemented by the Emirate to boost investment inflows, deliver world-class infrastructure, and establish supportive regulatory frameworks to facilitate the expansion of companies and the growth of exports and international trade. Strategic alliances between public and private sectors have also laid a robust foundation to ensure sustained growth of non-oil foreign trade both within the Emirate and the broader national economy.

The ‘Xport Xponential’ strategic program, introduced by the ECI, aims to support UAE-based companies that undertake export, by offering an array of cutting-edge financial and credit solutions. It also facilitates access to an extensive network of partners, and local and international importers, along with an expansive database encompassing over 300 million global enterprises.