Etihad Credit Insurance Announces AED 174 Million Funding For SME Growth Through Banking Partnerships

The 'Xport Xponential' programme by Etihad Credit Insurance (ECI) has successfully raised AED 174 million to support the growth of small and medium-sized enterprises (SMEs) in the UAE. This funding was secured with assistance from four banking partners: First Abu Dhabi Bank, Commercial Bank of Dubai, Ajman Bank, and Al Maryah Community Bank. ECI remains dedicated to securing similar financial support for SMEs through collaboration with other banking partners.

Abdulla Bin Touq Al Marri, Minister of Economy and Chairman of ECI's Board, highlighted the programme's alignment with the Ministry's mission to develop a flexible economy and robust entrepreneurial ecosystem. He stated: "The ‘Xport Xponential’ programme plays a pivotal role in advancing the UAE’s ongoing efforts to increase the contribution of small and medium-sized enterprises to the country’s non-oil GDP." The initiative supports the 'We the UAE 2031' strategy, aiming to boost non-oil exports to AED 800 billion and expand foreign trade volume to AED 4 trillion by the next decade.

Raja Al Mazrouei, CEO of ECI, emphasised that 'Xport Xponential' empowers UAE businesses to compete globally. She explained that it serves as a platform for local businesses and potential importers to connect. The programme identifies high-potential export markets, allowing small businesses to expand internationally with ease. Al Mazrouei added: "ECI’s ‘Xport Xponential’ programme aligns with the UAE’s strategic vision to diversify its revenue sources away from oil."

Futoon Hamdan AlMazrouei from First Abu Dhabi Bank expressed satisfaction in partnering with ECI on this initiative. She noted that it reflects the UAE's vision for economic diversification and sustainable growth. By providing SMEs with access to working capital and innovative trade finance solutions, new opportunities for global growth are unlocked. This strengthens the UAE's competitiveness in international markets.

Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, expressed pride in being a foundational partner in ECI's programme. He stated: "Commercial Bank of Dubai is proud to be a foundational partner in ECI’s Xport Xponential programme." The bank continues its commitment by empowering SMEs and supporting economic diversification in the UAE.

Mustafa Al Khalfawi, CEO of Ajman Bank, highlighted their participation as a significant milestone for SME empowerment. He said their involvement reflects Ajman Bank's commitment to supporting national agendas like Ajman Vision 2030 and We the UAE 2031 through Sharia-compliant financing solutions.

Innovative Financing Solutions

Mohammed Wassim Khayata from Al Maryah Community Bank praised their partnership with ECI on this initiative. He commented: "We are proud to partner with Etihad Credit Insurance on the ‘Xport Xponential’ programme." The bank is committed to offering digital financing solutions that enhance exporters' global competitiveness.

The 'Xport Xponential' programme was launched during 'Make It in the Emirates' (MIITE) event in May 2024. It aims at accelerating global expansion for UAE-based SMEs by providing financial support and ensuring export readiness through innovative trade finance solutions.

Programme Impact and Future Prospects

A total of 42 companies applied for participation; 10 were shortlisted based on evaluation criteria. These companies have generated AED 2.1 billion turnover collectively so far. They are now targeting expansion into Indonesia, India, Saudi Arabia, and Oman with an export potential worth AED 31.3 billion over four years across ten sectors.

The programme exemplifies ECI's role in driving sustainable economic growth by connecting businesses with international opportunities through tailored trade finance solutions. Since its inception, partnerships between ECI and government entities or banks have increased by 27%, reflecting its role in nurturing a robust export-enablement ecosystem.

Diverse Economic Sectors Benefiting

Xport Xponential features partnerships with federal entities like Abu Dhabi Department of Economic Development as well as local ones such as Khalifa Fund for Enterprise Development or Dubai Department of Economy & Tourism among others.

The financial partners include Emirates Development Bank along with several others like Abu Dhabi Commercial Bank or RAKBANK among others too numerous here but crucial nonetheless! Since inception till date - AED21 billion insured supporting local exports while underwriting premiums totalling AED447 million completed successfully!

This initiative not only aligns itself perfectly within broader visions aimed at diversifying economies away from oil reliance but also opens up new opportunities allowing local businesses thriving internationally across vital sectors!

With inputs from WAM