Jafza-based companies can trade with confidence leveraging ECI solutions
Trade payments protection solutions
Dubai– Jebel Ali Free Zone, Jafza, DP World, UAE Region’s premier business and logistics hub showcased to its customers the trade payments protection solutions it has rolled out in partnership with Etihad Credit Insurance, ECI, the UAE Federal export credit company on 19th November 2020.
During a well-attended webinar titled, “Etihad Credit Insurance Collaboration: Trade with Protection”, Jafza-based companies were given a walk-through of the ECI’s solutions as part of the free zone’s drive to ensure the growth of businesses, while lowering the cost of exports, by reducing the risk of non-payments, and funding, by lowering banking pre and post-shipment funding in the current unprecedented economic climate Jafza has introduced the ECI’s tailored solutions to support UAE-based businesses and increase trade by providing them with protection against commercial and non-commercial risks.
More than 8,000 companies in the free zone are set to directly benefit from the strategic collaboration of Jafza and the ECI, giving export businesses a major boost and a competitive edge in the regional and global markets.
Jafza believes that Etihad Credit Insurance’s range of export credit, financing and investment insurance products will directly benefit Jafza’s customers, particularly the SMEs. The partnership will be a game-changer for the export of goods and services because the ECI’s support increases cash flow, enables trade and contributes towards sustaining growth even as the markets recover. The shared objectives of the ECI and Jafza represent the vision of the leadership to establish the UAE as a preferred global hub for exports. The free zone is working closely with the ECI to take this partnership forward and reinforce their commitment to business continuity with confidence.
Also, the ECI has issued more than 1,600 revolving credit guarantees for a total exposure amount of AED1.2 billion in the first half of 2020, which is equivalent to AED4 billion guaranteed non-oil trade coverage. About 55 per cent of the total revolving credit limits were issued to large private exporters and 17 per cent to SMEs, while the remaining 38 per cent were issued in favour of the UAE Government companies.
The top sectors to benefit from these credit lines are F&B, Health & Pharmaceuticals, Automotive, Petrochemicals, Cable, Steel, and Building materials, accommodating some of the major sectors present in the free zone.
Jafza, which facilitated trade worth US$99.5 billion in 2019, is widely responsible for promoting the non-oil trade of Dubai and the UAE. Meanwhile, the ECI plays the role of a catalyst in accelerating the country’s non-oil economy, trade, investments, and strategic sectors development, in line with the UAE National Agenda leading to the UAE Vision 2021.