Etihad Credit Insurance Achieves AED 1.4 Billion Boost For Abu Dhabi Economy

Etihad Credit Insurance (ECI), the UAE's federal export credit company, saw an eight percent rise in its credit coverage in Abu Dhabi, totalling AED 1.4 billion in the first eight months of 2024. The financial services sector led with 50.6 percent of this coverage, followed by food and beverages, metals, paper manufacturing, packaging, and electronics and cables industries.

The UAE’s non-oil foreign trade achieved a record valuation of AED 1.4 trillion in the first half of 2024. Non-oil exports grew by 25 percent, making up 18.4 percent of total foreign trade. The national foreign trade expanded at an annual growth rate of 11.2 percent, surpassing the global average growth rate of 1.5 percent.

Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology and ECI Board member, highlighted the UAE’s commitment to a diverse economic model under visionary leadership. He noted that strategic initiatives aimed at bolstering non-oil sectors are crucial for driving industrial growth.

Al Suwaidi emphasised that initiatives like 'Make it in the Emirates' play a vital role in promoting local products and embracing digital transformation. These efforts align with the Ministry's strategy to empower Emirati industries and enhance their competitiveness globally.

In addition to these initiatives, Abu Dhabi has implemented strategic measures to boost investment inflows and deliver world-class infrastructure. This has established supportive regulatory frameworks facilitating company expansion and export growth.

Public-Private Partnerships

Raja Al Mazrouei, CEO of ECI, underscored the importance of public-private partnerships in driving foreign trade growth from Abu Dhabi. She stated that ECI aims to achieve a seven-fold increase in non-oil GDP contribution by 2031 through expanding credit coverage facilities across various sectors.

"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," said Al Mazrouei. "We also aim to promote further expansion of our credit coverage facility which currently caters to 17 different sectors across 110 countries."

Insurance Document Issuance

During this period, ECI witnessed a 24 percent rise in insurance document issuance within Abu Dhabi. Nationwide, ECI attained total credit coverage worth AED 10.6 billion with a 16 percent increase in insurance document issuance.

The financial services sector topped nationwide coverage at 21.36 percent, followed by logistics at 14.63 percent and reinsurance at 10.65 percent.

Economic Resilience

Al Suwaidi pointed out that despite global market challenges, Abu Dhabi's foreign trade continues to grow due to momentum in non-oil foreign trade of goods and services. In 2023, Abu Dhabi's foreign trade sector achieved an exemplary valuation of AED 3.5 trillion.

This growth is attributed to strategic alliances between public and private sectors ensuring sustained growth of non-oil foreign trade within Abu Dhabi and nationally.

Xport Xponential Program

The ‘Xport Xponential’ program introduced by ECI supports UAE-based companies involved in export activities by offering advanced financial solutions and access to a vast network of partners and importers worldwide.

This program includes an expansive database encompassing over 300 million global enterprises, facilitating easier access for local companies into international markets.

The significant rise in non-oil exports from Abu Dhabi highlights its status as a leading business incubator offering an environment conducive to diverse commercial ventures.

With inputs from WAM