The Ministry of Industry and Advanced Technology (MoIAT) and Etihad Credit Insurance (ECI) on Tuesday signed a Memorandum of Understanding (MoU) to inject capital into the UAE’s industrial sector and support local industrialists, according to Emirates News Agency (WAM).
The new MoIAT-ECI partnership offers a package of financial incentives to support UAE exports, offer financing facilities for manufacturers and advanced technology projects, guarantees for industrial loans, an umbrella insurance for small and medium enterprises (SMEs), and assistance in securing intellectual property rights for startups.
For the latest headlines, follow our Google News channel online or via the app
Omar Suwaina Al Suwaidi, Under-Secretary of MoIAT, and Massimo Falcioni, CEO of ECI, inked the MoU formalizing the collaboration.
Under the terms of the agreement, the two entities aim to provide products and facilities to support key industrial sectors with a focus on the priority areas of Operation 300bn -– MoIAT’s National Strategy for Industry and Advanced Technology. They will also form a permanent taskforce to implement initiatives that contribute to driving the growth of the industrial and advanced technology sectors in the UAE.
The Ministry seeks to promote ECI’s trade solutions –- including trade credit insurance, trade finance, export finance, project finance, loan repayment, equity insurance for startups and micro-SMEs, and ‘Click & Cover’ online solution for SMEs – through the Make it in the Emirates campaign. ECI, in turn, will contribute to attaining Operation 300bn’s goal of enhancing the competitiveness of UAE industrial companies in international markets.
The collaboration will also involve other financial institutions and development banks in improving the current offerings and developing innovative products that meet the needs of the industrial and advanced technology sectors.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, said that the partnership is “an important step in boosting the global competitiveness of the UAE’s industrial sector.”
“The array of financial incentives and facilities offered through the new partnership will help stimulate innovation and entrepreneurship among the UAE’s leading industrialists as they seek to fully integrate advanced technologies and Fourth Industrial Revolution (4IR) solutions into their production lines,” he added.
Dr. Al Jaber noted that the agreement is fully aligned with the UAE leadership’s vision of making the industrial sector a key driver of sustainable future economic growth.
“Cooperation with a major national institution such as ECI will make products made in the UAE easier to access for new global markets while enhancing their competitive advantage and improving the performance of local industry. It will also help forge new economic sectors and consolidate the UAE’s position as a global hub for innovation and a leader in industries of the future,” he added.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Deputy Chairman of ECI Board of Directors, said, “Easing access to trade and project financing will help advance Operation 300bn and Make it in the Emirates to generate more than double the value of the output of the national manufacturing and industrial sector in the next 10 years.
“We believe this collaboration will play a crucial role in boosting the confidence of UAE businesses, thereby enabling them to increase the contribution of the industrial sector in the country’s non-oil GDP.”
Falcioni, in turn, stated that this agreement will enhance industrial sector and attract local and international investment. ECI has always been a catalyst in expanding UAE’s business sector through a range of export credit, financing, and investment insurance products. “As the UAE Federal export credit company, our suite of innovative trade credit and project financing solutions and services can play a vital role in supporting the ‘Operation 300bn’ and ‘Make it in the Emirates’ initiatives by the government,” he said.
As of May 2021, ECI enhanced the competitiveness of the UAE non-oil trade and export by issuing 4,039 revolving credit guarantees in excess of AED2.5 billion, equivalent to AED7.5 billion worth of non-oil trade to over 85 countries and eased trade and project finance through guarantees for AED1.16 billion.
ECI’s guarantees benefited cable, steel, petrochemicals, building materials, packaging, automotive, energy, utilities, healthcare, and food sectors.
Read more: UAE to launch its first digital currency by 2026
Gulf rebound seen as Saudi Arabia, UAE to top 4pct growth in 2022: Reuters surveyThe six economies in the Gulf Cooperation Council (GCC) are set to rebound and grow 2 percent to nearly 3 percent this year while the region’s two ... Economy
UAE Golden Visa secures a bright long-term future for expat businessesThe Golden Visa initiative introduced by the United Arab Emirates government offering long-term commitments to expat investors and entrepreneurs is ... Opinion
Dubai Expo 2020: Everything you need to know about the UAE mega-eventOriginally scheduled to take place in 2020, the World Expo is set to be held in Dubai later this year, showcasing innovations from around in the world ... Features
UAE to launch its first digital currency by 2026The United Arab Emirates will launch its first digital currency by 2026, the central bank of the oil-rich Gulf state, which serves as the region’s ... Banking & Finance
Emirates tops UAE’s Recommended Rankings Index for 2021: SurveyEmirates is first on a list of the United Arab Emirates’ most recommended brands, a new poll revealed. Dubai’s flag carrier airlines’ top ranking ... Gulf
HSBC commits $5 bln in corporate lending to help UAE growthHSBC said on Sunday it is committing $5 billion in lending to “strong” companies in the United Arab Emirates to help drive the country’s growth ... Economy
Fledgling UAE rail network step towards bridging the GulfIn the desert emirate of Abu Dhabi, Ibrahim al-Hammadi inspects a freight train on the UAE’s first railway line. He climbs aboard the locomotive, does ... Features
UAE-Israel Greentech collaboration to reach $500million in five years: ExpertAs the first anniversary of the US-brokered Abraham Accords nears, the UAE and Bahrain are continuing to expand bilateral relations with Israel with ... Middle East