DUBAI, UAE, October 31, 2021 /EINPresswire.com/ –
• Etihad Credit Insurance signs a tripartite cooperation agreement with First Abu Dhabi Bank and Crediti Fintech to launch the “UAE Trade Finance Gateway”
• Authorized by the UAE Ministry of Economy, the project aims to position ECI and FAB as the primary gateway for exporters and re-exporters to trade credit and financial solutions.
• UAE Trade Finance Gateway aims to facilitate the access of UAE exporters and re-exporters to trade and export finance, as well as to support the growth of SMEs, thus enabling them to contribute to the UAE industrial strategy. “Operation 300 billion”
• This project will address the challenges facing SMEs and the dearth of trade finance solutions through financial and technological solutions to build a strong SME sector and resilient economy.
To give a significant boost to the economic development of the United Arab Emirates, Etihad Credit Insurance (ECI), the federal export credit company of the United Arab Emirates, signed a memorandum of understanding with First Abu Dhabi Bank (FAB) and Crediti Fintech for the implementation of the “UAE Trade Finance Gateway”.
The availability of finance is essential for a healthy trading system. According to the World Trade Organization (WTO) report “Trade Finance and SMEs,” up to 80 percent of world trade is supported by some kind of finance or credit insurance. However, according to the report, there are significant gaps in the offering and as a result, many companies cannot access the financial tools they need. Without adequate trade finance, opportunities for growth and development are missed, the WTO said. Businesses are deprived of the fuel they need to do business and grow. Small and medium-sized enterprises (SMEs) face the greatest barriers to accessing finance on affordable terms. This is of particular concern, the WTO report continues, as SMEs are one of the main engines of trade, employment and economic development.
The “Trade Finance Gateway” platform aims to facilitate the access of UAE exporters and re-exporters to finance, as well as to support the growth of SMEs, thus enabling them to contribute to the UAE industrial strategy ” Operation 300 billion ”.
Supported by the UAE Ministry of Economy, as an example of a public-private partnership approach, the project aims to position ECI as the primary gateway for exporters and re-exporters to trade credit and financial solutions that will be provided by commercial banks and financial institutions, where the Monimove fintech platform is the backbone of the technology. FAB is the first commercial bank to join this initiative and other commercial banks are expected to follow, confirming the strength of the UAE banking system, able to meet the core financial needs of businesses.
Commenting on this, Mr. Massimo Falcioni, CEO of Etihad Credit Insurance, said: “Maktoum, Vice President, Prime Minister of United Arab Emirates and Ruler of Dubai. His Highness said that the UAE’s non-oil trade annually exceeds 1.5 trillion dirhams and that our logistics network is present in 400 international cities. The UAE’s non-oil economy accounts for over 70 percent of our GDP. His Highness also made it clear that our goal is to increase our domestic exports by 50 percent in the coming years. We are proud to work as a team, federal and local, to bring our national economy to new heights.
The project will address a number of challenges that exporters and re-exporters face in obtaining finance to finance their working capital needs, such as the limited availability of finance for small businesses, the cumbersome and confusing process for obtaining funding, inability of customers to better understand – product or solution fit, lack of infrastructure to run digitized documentation, and long and tedious process.
It will also address the challenges facing SMEs and the dearth of trade finance solutions through financial and technological solutions to build a strong SME sector and a resilient economy. Through this partnership, exporters and re-exporters will benefit from transparent and rapid access to financing solutions bringing together the insurer, banks and exporters on a unified platform. ECI insurance coverage will enable exporting SMEs to obtain FOB secured loans by leveraging the cutting edge technology of the MoniMove platform. SMEs will benefit from an end-to-end digitized process encouraging smooth collaboration between all parties and accelerating access to finance products.
Mr. Shireesh Bhide, Head of Corporate, Commercial and International Banking Services at FAB, said: “FAB has long served as a gateway for trade and investment flows between the UAE and international markets, providing trade finance to some of the country’s largest exporters. Through this innovative partnership with ECI and Crediti Fintech, we will be able to extend our expertise to a growing range of companies in the United Arab Emirates, providing vital support to exporters of all sizes. The Unified Trade Finance Gateway will leverage technology, data and customer relationships to accelerate the growth potential of the country’s SMEs, start-ups and entrepreneurs, and support the UAE’s strategy for a future economy sustainable and diverse.
At the same time, Mr. Hashim Al Hussaini, CEO of Crediti and co-founder of MoniMove, said: “This innovative initiative will provide a way forward to tackle the financing challenges of SMEs. We are proud to walk the same path with two of the country’s great giants, this MoU demonstrates our commitment to deliver the next generation of credit utilization, supply chain and trade finance solutions.
“We are very happy to be part of this unique initiative, we are convinced that together we will contribute to the vision of the country and the growth of the national economy”, said Mr. Ali Al Mulla, President of GLH and member of the board of directors of Crediti.
In addition, the UAE Trade Finance Gateway will strengthen the ability of exporters to do business globally and assist them in various aspects, such as accessing new cross-border markets, liquidation protection counterparties, cash flow support, concentration risk reduction, as well as local facilitation and global bank financing and portfolio monitoring.
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