A partnership agreement has been signed between the export credit agencies of the UAE and Israel to establish trade links between the two countries, broadening the possibilities for export financing for their exporters.
Etihad Credit Insurance (ECI), the Federal Export Credit Company of the United Arab Emirates (UAE) and the Israel International Trade Liability Insurance Agency (ASHR'A) have agreed to jointly develop strategic cooperation to facilitate exports, trade and investment, to pursue new market prospects and to forge partnerships in both countries in the areas of technical assistance, training and capacity building.
Multiple benefits of this arrangement for exporters from both countries can be summarised, beginning with collaboration between export credit firms to promote access to export credit facilities and risk reduction for non-payments, as well as access to main business sectors such as irrigation, water management, clean energy, medical and health care, aluminium, steel, cables, petrochemicals, tec.
Massimo Falcioni, CEO of ECI, and Nissim Ben Eli, CEO of ASHR'A, have signed the Memorandum of Understanding (MoU). “This first-of-its-kind agreement between the export credit agencies of UAE and Israel is a result of the giant leap for sustainable peace taken by our visionary leaders through the Abraham Accords,” said Falcioni.
“We are delighted to sign this MoU with ECI, as it represents Israel's and the UAE's fruitful attempts to forge close bilateral cooperation, which serves as a global model for collaborations that favor different companies. With state guarantees from both countries, this agreement would promote exports and investment, help minimize political and trade risks and improve mid- and long-term export financing,” said Ben Eli.
Under this MoU, ECI and ASHR'A will seek to enhance their partnership, in particular by improving trade and business relationships; exploring joint insurance opportunities, co-insurance products export programmes, investment and services to assist and help insured exporters; promoting access for small and medium-sized enterprises; mutual sharing of good practices in risk management and underdevelopment, nation risk management, coordination of cooperative activities, as well as the recognition, among others, of unique strategies in the field of export insurance.
With exposure to a wide variety of export credit, finance and investment insurance products, this strategic partnership would support the exporting communities of both countries.
The annual trade between the UAE and Israel in a wide variety of industries is projected to hit $4 billion (Dh14.68 billion) each year, covering the sectors of finance and investment, civil aviation, innovation, trade and economic affairs, healthcare, tourism, education, telecommunications, agriculture and food security, etc.