UAE extends support to exporters, businesses facing various problems

Business Bureau, Gulf Today

Global trade and supply chain are currently passing through the tough times because of coronavirus COVID-19. However, UAE’s federal export credit company, Etihad Credit Insurance (ECI), is committed to extend all its support to exporters and businesses.

Exporters are particularly exposed to this risk because of the interconnected supply chains in global trade, which has already slowed down some of the major economies in the world. With people staying home because of these preventative measures, consumer and business spending decreases. This less or lack of liquidity is creating a significant pressure on businesses, whose likelihood of delaying or defaulting on their payments, increases given this global challenge. Against this background, the UAE’s federal export credit company, Etihad Credit Insurance (ECI), is supporting UAE exporters and businesses facing payment and supply chain disruption concerns due to COVID-19 with a range of services that will help them navigate these economic times.

Export credit insurance

ECI provides guarantees and insurance solutions to mitigate the political and commercial risks arising from financing or refinancing export transactions, on behalf of the UAE government, helping ease the pressure caused by the global spread of COVID-19.

Massimo Falcioni, CEO of ECI, said: “ECI has the expertise and knowledge to support UAE-based companies exporting to different parts of the world. We have been partnering with banks and intermediaries since 2018 to help UAE businesses of all sizes fulfil and get paid for export contracts and ease access to export funding.”

“For exporters and businesses that are concerned about getting paid, ECI offers an export credit insurance solution that can help them recover the cost of fulfilling an order that is terminated by events outside their control, such as the adverse impacts of COVID-19,” he added. To help mitigate the uncertainty of exporting to other countries, ECI is offering financial support to domestic companies’ international export operations and other activities.

Falcioni said: “ECI has built a large ecosystem of strategic partners including local and international banks, including FAB, ADCB, Emirates NBD, RAK Bank, National Bank of Fujairah, HSBC, Standard Chartered and Natixis, which might offer loans at concessional rate, guaranteed by ECI to secure the funding of the supply chain.”

To address the negative disruption in global trade and international supply chains caused by COVID-19, ECI encourages exporters based in the UAE to take the benefits of ECI advisory solutions that help in finding alternative suppliers globally.

The UAE’s federal export company has a global network of more than 360 million businesses worldwide and can assist in advising on available options and connect UAE exporters to alternative suppliers to sustain their trade operations in the international markets.

Falcioni said: “The uncertainty in the market is increasing due to the effects of coronavirus, causing a ripple effect in the global supply chain. ECI is here to support exporters and domestic businseses with solutions that will help them address payment, additional funding and supply chain concerns due to COVID-19.”