Islamic economy promoted by ECI and DIEDC deal on sharia-compliant exports

The two entities will also work with Islamic banks and exporters in projects that require export financing, structured trade finance, project finance, as well as supply chain finance.

By Rahul Vaimal, Associate Editor
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UAE’s prime export credit agency, Dubai Etihad Credit Insurance (ECI) has agreed to partner with the Dubai Islamic Economy Development Centre (DIEDC) to encourage UAE exports through sharia-compliant export credit solutions.

The deal is in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, who emphasized at the third Global Islamic Economy Summit, that the Islamic economy offered a real chance to find new ways of achieving economic, commercial, and financial growth.

In a Memorandum of Understanding (MoU) endorsed by Abdullah Mohammed Al Awar, CEO of DIEDC, and Massimo Falcioni, CEO of ECI, the two institutions accepted to form a committee that will execute initiatives directed towards increasing the UAE’s sharia-compliant exports. The number of members, the structure of the committee and the means of financing, as well as the schedule of meetings, the working mechanism and the decision-making process, will be agreed upon by ECI and DIEDC.

The arrangement is a result of the shared goals of ECI and DIEDC to raise awareness for the Islamic economy globally and to reinforce the UAE’s position as the favored global hub for halal exports. As part of the agreement, the federal export credit company will assist DIEDC’s partners through its trade credit services that can considerably grow their sharia-compliant exports. The two organizations will also associate with Islamic banks and exporters in projects that need export financing, structured trade finance, project finance, as well as supply chain finance.

Moreover, the partnership is mandated to improve awareness of Islamic trade credit and political risk solutions and financing structures (based on takaful) as well as to explore how ECI can render DIEDC’s business partners with risk mitigating tools. In doing so, the two entities are attempting to drive the global competitiveness of these companies to assist them to improve their export competencies and enter new markets.

Abdullah Mohammed Al Awar

“Through this strategic partnership with ECI, DIEDC seeks to create more opportunities in the Islamic economy space for UAE companies engaged in exporting sharia-compliant products, and to attract more export-focused investments. This MoU opens new global markets for high-quality sharia-compliant products from the UAE that are already in great demand for complying with best-in-class standards.”

“Through our sharia-compliant trade credit solutions, ECI stays true to its vision of supporting the growth of businesses that are aligned with the vision of the UAE leadership. We continue to implement our clear roadmap through achieving our goals in alliance with strategic partners both within and outside the country. Together with DIEDC, we aim to not only strengthen the efforts of halal exporters in the country, but also to facilitate the development of new products that will set benchmarks across sectors, and contribute significantly to positioning the UAE as the global leader in the Islamic economy,” said Massimo Falcioni, CEO of ECI.