UAE And Czech Republic Forge Stronger Economic Relations Through Strategic Partnership

Etihad Credit Insurance (ECI), the UAE Federal export credit company, has entered into a strategic partnership with the Export Guarantee and Insurance Corporation (EGAP). This agreement aims to establish a framework for bilateral reinsurance obligations and provide insurance facilities to companies in the UAE and the Czech Republic. The initiative is expected to promote bilateral trade between the two nations in the coming years.

The agreement was signed by Abdullah bin Touq Al Marri, Minister of Economy and Chairman of ECI Board of Directors, and David Havlicek, Chairman of the Board of EGAP. Bin Touq highlighted the growing economic relations between the UAE and the Czech Republic, noting that this new partnership complements existing efforts to build sustainable and diversified economic ties.

Bin Touq stated, "The agreement will promote the creation of new economic prospects between the two exporters' communities in both countries. It will also contribute to consolidating common economic relations, thereby supporting the establishment of the UAE as a global partner and influential economic centre by the next decade, in line with the ‘We the UAE 2031’ vision."

Scope of Cooperation

The agreement outlines robust cooperation across various duties. These include addressing risks related to sovereign and quasi-sovereign debtors, exploring innovative avenues for improving flexibility for private sector debtors, and offering insurance facilities for export agreements that comply with OECD guidelines on officially supported export credits.

Bilateral Benefits

This partnership cultivates a strong foundation for bilateral cooperation in areas of mutual interest. It is expected to benefit both countries’ export and foreign trade industries significantly. David Havlicek expressed confidence that this agreement would advance trade and investment between the two countries.

Boosting Confidence

Havlicek stated, "Providing export credit solutions to Czech and UAE companies will undoubtedly boost their confidence and security. This will encourage them to expand their mutual business and investments. We will work closely with our partners in the UAE to ensure the success of this agreement and maximise its benefits."

Commitment to Global Partnerships

Raja Al Mazrouei, CEO of Etihad Credit Insurance, said, "This agreement aligns with ECI’s commitment to broadening its global network of partnerships with strategic markets. It offers innovative credit solutions, streamlines export operations, reduces risks, and fosters confidence in exports, re-exports, and foreign trade channels."

Expanding Collaborations

The agreement demonstrates Etihad Credit Insurance's dedication to enhancing cooperation with export credit agencies. Over recent years, ECI has successfully formed around 21 cooperation agreements with government export credit agencies worldwide. This move further broadens ECI’s network of collaborations.

Xport Xponential Initiative

This partnership is a crucial component of ECI’s recently introduced strategic initiative ‘Xport Xponential’. The initiative aims to support the growth of UAE exports, increase national economic diversity, and promote sustainability.

EGAP's Focus Areas

EGAP is a state-owned credit insurance company specialising in insuring non-marketable commercial risks associated with exports from the Czech Republic. The company primarily focuses on providing bank loans with maturities exceeding two years to finance energy exports, machinery, technological systems, investment projects, and transport constructions.

With inputs from WAM