Etihad Credit Insurance Secures AA- Rating With Stable Outlook From Fitch Ratings

Etihad Credit Insurance (ECI), the UAE's Federal Export Credit company, has been awarded an Insurer Financial Strength (IFS) Rating of 'AA-' and a Long-Term Issuer Default Rating (IDR) of 'AA-' by Fitch Ratings. These ratings come with Stable Outlooks and highlight ECI's significant role in promoting the UAE's economic diversification and enhancing its global trade leadership.

Abdullah bin Touq Al Marri, Minister of Economy and Chairman of ECI's Board, emphasised the UAE's economic strength under its wise leadership. The nation has adopted flexible policies that boost national product competitiveness globally. These strategies have increased the non-oil sector's GDP contribution to 75%, fostering partnerships with regional and international markets.

The favourable rating from Fitch reflects confidence in the UAE economy, according to Bin Touq. He stated, "ECI’s favourable rating from Fitch ratings demonstrates the confidence of business communities in the national economy, and promotes its reputation regionally and globally, thereby consolidating the country’s position as a leading hub for business and trade."

Several factors contributed to ECI's achievement, including strong government support as the federal export credit agency. Its capital strength and lack of financial constraints were crucial. Additionally, a robust reinsurance programme and expertise in insuring foreign trade risks played vital roles.

Raja Al Mazrouei, CEO of ECI, highlighted that this rating is among the highest given by specialised agencies. It serves as a benchmark for ECI's financial performance and risk tolerance. She noted that "The AA-rating further helps ECI provide its services and solutions more effectively worldwide, boosts national export competitiveness, and makes it easier for Emirati products to reach targeted global markets."

ECI's Role in National Economic Goals

Since its establishment, ECI has been pivotal in supporting the UAE economy and non-oil foreign trade. By facilitating local trade activities and providing tools against trade risks, it reduces financing costs. This enables access to international markets while advancing national economic objectives through comprehensive services.

Aligned with the 'We the UAE 2031' initiative, which aims to boost GDP to AED 3 trillion by 2031, ECI plays a key role in creating a competitive environment for exporters. The initiative also targets increasing non-oil exports to AED 800 billion. This milestone underscores efforts to enhance export activities for UAE-based companies.

ECI continues to empower entities by offering protection against political risks and facilitating project financing. Its strategic roadmap aims to expand credit assistance for manufacturers and exporters, further strengthening its impact on global market reach for Emirati products.

The alignment of ECI’s ratings with the UAE’s Long-Term IDR reflects robust economic policies aimed at fostering a dynamic economy ready for future challenges. This alignment underscores strategic initiatives that bolster the nation's position as a global trade leader while ensuring sustainable growth across diverse sectors.

With inputs from WAM