Etihad Credit Insurance joins hands with KazakhExport to boost trade ties
- 13 Jun 2023
Etihad Credit Insurance (ECI), the credit protection company of the UAE government, has signed an MoU with Export Insurance company “KazakhExport” to enhance trade and support sustainable economic growth between the UAE and Kazakhstan.
The MoU is in line with the “We the UAE 2031” vision aimed at strengthening bilateral economic relations between the two countries, driving the business of exporters and small and medium-sized enterprises (SMEs) towards prospects for sustainable growth in the fields of renewable energy, waste management, and the manufacture of halal products, within the UAE’s continuous efforts to cement its position as a global hub for trade and finance, and to enhance its role as an attractive market for major international companies.
The MoU was signed by Raja Al Mazrouei, Chief Executive Officer of ECI, and Aslan Kaligazin, Chairman of KazakhExport during the 13th Annual Aman Union General Meeting in Dubai.
The two parties agreed to provide Sharia-compliant insurance, trade credit and export solutions to UAE and Kazakh exporters to protect them from potential commercial risks in international dealings. It will also allow both parties to cooperate in organising workshops aimed at educating SMEs on the advantages of using trade protection solutions to mitigate the risks of non-payment resulting from several commercial and geopolitical factors.
Raja Al Mazrouei, CEO of Etihad Credit Insurance, emphasised the strategic significance of the partnership, stating: “By entering into this agreement with KazakhExport, we are strengthening our dedication to enhancing the global competitiveness of businesses within the UAE and Kazakhstan. This vital partnership directly aligns with ECI’s mission to boost non-oil exports, simultaneously extending comprehensive protection to SMEs, thereby enriching the UAE’s economic diversification. As we amplify the global footprint of SMEs, we’re also bolstering the UAE’s economic aspirations. Ultimately, this agreement not only fortifies our commitment to enhancing economic and trade relationships with Kazakhstan but also paves the way for sustainable economic growth, reflecting our mutual objectives.”
As part of the MoU, it was also agreed by “Etihad Credit Insurance” and “KazakhExport” to form a task force to explore more opportunities for cooperation, with a focus on seven strategic areas, including insurance, trade promotion and programmes for supporting SMEs’ business.
It is worth noting that the UAE is Kazakhstan’s largest trading partner in the region; the total trade exchange between them exceeded about $632.6 million at the end of 2022, and exports from the UAE to Kazakhstan amounted to about USD 72.3 million.
Meanwhile, spurred by a growing influx of foreign direct investment and a $7 trillion development plan for the Kingdom’s giga projects, ICT spending in Saudi Arabia is poised to top $34.5 billion this year. That’s according to the latest forecast from International Data Corporation (IDC), with spending on software (including cloud) and IT services set to increase at compound annual growth rates (CAGRs) of 11.4% and 8.7%, respectively, over the 2022–2026 period.
The government sector will be the country’s biggest IT spender in 2023, with spending on AI, IoT, cybersecurity, and big data analytics alone set to exceed $574 million as innovative technologies become foundational to the aim of building an ‘Experience Economy’. Finance, communications, energy and resources, and manufacturing will be the Kingdom’s other top spenders in 2023, although the fastest growth over the next five years will be seen in the healthcare, finance, retail/wholesale, professional services, and education sectors.
“To harness the full potential and widespread benefits of the digital economy, governments and businesses must implement strategies to measure and cultivate it,” says Jyoti Lalchandani, IDC’s group vice president and regional managing director for the Middle East, Türkiye, and Africa. “Creating regulatory environments and nurturing talent will be critical to success. Today, technology plays an ever-increasing role in enabling, measuring, and reporting on sustainability initiatives and diversity and inclusion drives, with government and business leaders prioritizing these issues on their digital agendas.”
Such issues will sit at the heart of the agenda during this year’s IDC Saudi Arabia CIO Summit, which will take place at the Fairmont Riyadh on September 13-14. Addressing the theme ‘Enabling the Digital Economy’s Leaders’, the event will bring together the Kingdom’s foremost IT and telecom leaders, digital government pioneers, regulators, and industry thought leaders. Expert speakers will assess the current state of the digital economy, evaluate its ongoing impact on citizens, customers, employees, and operations, address key challenges, and outline proven best practices and strategies to drive future success.