UAE non-oil foreign trade in recent months shows huge growth

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In May 2022, ECI enhanced the competitiveness of the UAE’s non-oil trade and exports by issuing 7,307 revolving credit guarantees.

Staff Reporter, Gulf Today

Early indicators of the country’s non-oil foreign trade over the past few months have shown significant growth, especially non-oil exports, which grew by more than 17% in the first quarter of 2022.

This was revealed on Sunday by Abdullah bin Touq Al Marri, Minister of Economy.

Etihad Credit Insurance (ECI), the Federal Export Credit Corporation of the United Arab Emirates, held its second Board of Directors in 2022, chaired by Abdullah bin Touq Al Marri, Minister of Economy and Chairman of the Board of administration of ECI.

The virtual meeting discussed the main indicators of economic performance up to May this year, as well as its achievements in promoting national, regional and international trade in terms of strengthening economic, industrial and export diversification strategies not UAE oil company.

“This positive performance is achieved against the backdrop of the current global economic challenges. The Ministry of Economy intends to further diversify the UAE’s export markets in the next phase of its growth strategy, and Etihad Credit Insurance is playing a crucial role in supporting this cooperative mission. with its various partners involved in the development and promotion of national exports at federal and local levels.

During the meeting, he applauded ECI’s leadership and its outstanding achievements in the first five months of 2022 with substantial contributions to the UAE economy, active participation in government initiatives and its firm determination to support the UAE companies and enhance their competitiveness in foreign markets.

In accordance with the wise directives of the leaders of the United Arab Emirates, Etihad Credit Insurance works within the framework of an overall vision of the national economy which aims to reinforce the efforts of economic diversification and to develop the national non-oil exports. Through various engagements, collaborations and trade credit solutions, ECI has supported SMEs by opening up new markets and improving their competitiveness to support economic diversification policies and achieve the UAE’s vision and directions for the next stage of development” , added Al Marri.

In May 2022, ECI enhanced the competitiveness of the UAE’s non-oil trade and exports by issuing 7,307 revolving credit guarantees with a total guaranteed exposure of Dhs 4.8 billion, equivalent to Dhs 14.4 billion. of Dhs of assured short-term non-oil trade with more than 111 countries. Benefiting 15 growth sectors, these secured guarantees covered MAD 6.7 billion in international trade, MAD 7.6 billion in domestic trade, MAD 1.2 billion in medium/long-term trade and MAD 1.3 billion in Dhs in political risk insurance.

The main sectors that have benefited from ECI support are logistics (18%), electrical and electronic equipment (18%), machinery and equipment (16%), metallurgy (12%), petrochemicals and chemicals (9%). ), heavy industry (7%), financial services and banking (6%), pharmaceutical and healthcare (4%), food and beverage (4%), among others.

The breakdown of secured non-oil exchanges facilitated by ECI for each emirate over the last five months is as follows: Abu Dhabi (Dhs 1.9 billion); Dubai (9.9 billion Dhs); Sharjah (1.5 billion Dhs), Ras Al Khaimah (504 million Dhs), Fujairah (102 million Dhs), Ajman (282 million Dhs), Umm Al Quwain (159 million Dhs).

In addition, the major destination countries for UAE exports and re-exports protected by ECI’s trade insurance coverage extended to UAE, Kingdom of Saudi Arabia, Egypt, India, UK, Oman, Kuwait, USA, Italy and Ghana.

During the meeting, the Board of Directors had a strategic dialogue on ECI’s strategy for 2022-2026, which aims to develop non-oil exports to the United Arab Emirates and provide solutions to challenges related to the trade credit insurance or project finance solutions with a focus on SMEs and improving their export opportunities. And by launching numerous initiatives and unlocking tailor-made credit insurance and financing solutions, the strategy also aims to intensify its efforts to achieve the country’s foreign trade and industrialization ambitions.

The board also explored ways to further develop the risk management, compliance and internal audit organization.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Vice Chairman of the ECI Board of Directors, said: “The UAE considers it a priority to meet the varied needs of businesses and national exporters, as well as strengthening the country’s leading position as a regional and international hub for re-exports Etihad Credit Insurance’s renewed strategy, which is aligned with the UAE’s national program for non-oil exports and its vision for the next 50 years, aims to ensure long-term and sustainable growth in the country. Based on this, the ECI focuses on supporting sectors that diversify the economy towards non-oil GDP and on strengthening sectors that are a national priority for economic self-reliance and those that offer stable growth for the future.

Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, said: “Etihad Credit Insurance is a key partner in our efforts to advance the manufacturing sector and more than double its contribution to the UAE’s GDP. . With its innovative range of export insurance and finance solutions that help large companies and SMEs grow, diversify and improve operational efficiency, they are an integral part of the country’s overall industrial strategy. 300bn and Make it in the Emirates.

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