Jebel Ali Free Zone (Jafza), UAE region’s premier business and logistics hub has introduced its customers to the trade payments protection solutions it has launched jointly with Etihad Credit Insurance (ECI) the UAE Federal export credit company.
During a webinar titled, “Etihad Credit Insurance Collaboration: Trade with Protection” hosted by Jafza, the companies based in the Free Zone were given in-depth guidance on the ECI’s trade payment solution.
The solution was initiated in line with Jafza’s drive to ensure business growth at the same time reducing the export costs by lowering the risk of non-payments and pre and post-shipment funding in the current economic situation and it further aims to offer protection against both commercial as well as non-commercial risks.
The duo will benefit over 8,000 companies in the free zone, as it will give a boost to the export business in both regional and global markets.
With this partnership, Jafza aims to support its customer base especially the SMEs by utilizing a wide range of export credit, financing and investment insurance products offered by ECI. The deal is expected to be a game-changer for the Free Zone as it will boost cash flow, trade and contribute towards consistent growth.
Further, the ECI has issued over 1,600 revolving credit guarantees for a total exposure amount of $326 million in the first half of 2020 and about 55 percent of it was provided to large private exporters and 17 percent to SMEs and the remaining 38 percent to the UAE Government companies.
The credit line has benefited sectors including F&B, Health & Pharmaceuticals, Automotive, Petrochemicals, Cable, Steel and Building materials.
The ECI plays a major role 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.