In a bold move to invigorate the UAE economy, non-oil exports are set to reach Dh800 billion by 2031, as announced by Abdulla bin Touq Al Marri, Minister of Economy. This ambitious target forms part of a larger vision to escalate non-oil foreign trade to Dh4.0 trillion within the next decade.
UAE’s Regional and International Trade Successes
The UAE has firmly established itself as the preeminent hub for trade and investment in the region. “By focusing on emerging industries and SMEs, we will continue to diversify our economy in alignment with the ‘We the UAE 2031’ vision,” said Al Marri.
Etihad Credit Insurance Board’s Integral Role
Al Marri, who also chairs the Etihad Credit Insurance Board of Directors, emphasized ECI’s vital contribution to this national vision. ECI has played a pivotal role in fostering domestic trade growth, supporting UAE enterprises, and enhancing economic ties through comprehensive economic partnership agreements (Cepas). “ECI’s credit solutions and strategic partnerships have bolstered the global competitiveness of UAE businesses, a key factor in propelling our non-oil exports,” noted Al Marri.
Significant Growth and Sustainability Initiatives
ECI’s impressive achievements include a gross exposure of Dh9.6 billion by the end of 2023, marking a 21-fold increase since 2019, according to Raja Al Mazrouei, CEO of ECI. Additionally, ECI’s commitments to clean and green energy initiatives underscore its role in driving sustainability. “ECI’s support has been both financial and strategic, contributing to the 2030 Agenda for Sustainable Development while promoting non-oil trade and adhering to international standards,” Al Marri added.
Expansion and Impact on Non-Oil Exports
In its annual report, ECI highlighted its impact on the UAE’s non-oil exports, which accounted for 3.1% of the Dh441 billion total in 2023, up from 1.9% the previous year. The diversity of ECI’s portfolio has been instrumental in this growth, with SMEs making up over two-thirds of beneficiaries and large corporations representing 20.9%. This is a testament to ECI’s substantial influence on achieving the UAE’s 2031 foreign trade objectives.
Innovative Solutions for UAE Exporters
ECI remains committed to pioneering credit solutions, providing accessible financing, offering market insights, and fostering strategic collaborations. “We enable UAE businesses to engage confidently in global trade, thus contributing to a robust, diversified economy. Our innovative approach and strategic business plans have cemented ECI’s role as a pillar of stability for UAE enterprises,” said Al Mazrouei. In 2023, ECI saw substantial demand for its services, reflected in a 25% increase in issued policies compared to 2022.
Strengthening National Exports
“As we evolve and expand, enhancing ECI’s services to fortify national exports stands as our primary goal. This strategic phase aims to double the growth rate of UAE exports through ECI and amplify our contribution to the non-oil GDP by sevenfold by 2031,” declared Al Mazrouei.
Global Outreach and Industrial Sector Support
ECI’s global outreach in 2023 aided UAE exporters across 110 countries and 17 sectors, totaling Dh14 billion in non-oil trade and investment. Approximately 21 agreements with international export credit agencies have fortified ECI’s status as a reliable partner in global commerce.
Notably, ECI provided Dh4.7 billion in credit cover to the UAE’s industrial sector, a crucial contributor to non-oil exports. In 2023 alone, Dh1.4 billion was allocated, facilitating the export achievements of manufacturers in collaboration with the Ministry of Industry and Advanced Technology (MoIAT).
Commitment to Economic Development
ECI’s projects are aligned with economic development goals, including a $500 million credit insurance commitment to Africa’s clean energy transition, part of the UAE’s $4.5 billion Africa Green Investment initiative. In 2023, ECI managed late payments worth Dh415 million, with an 83% recovery rate, as detailed in its annual report.
By integrating strategic support, innovative solutions, and a focus on sustainability, ECI continues to be a cornerstone in propelling the UAE economy non-oil exports and fortifying its presence in global trade.