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In line with the United Arab Emirates’ (UAE) 2021 Vision, Etihad Credit Insurance (ECI) emerges as a beacon of support for businesses venturing into the non-oil export domain. Established as a public joint stock company, ECI is fully backed by the UAE federal government, illustrating the nation’s commitment to economic diversification. As the official export credit agency, ECI plays a pivotal role in bolstering the UAE’s trade, investments, and strategic sector development, both locally and internationally. Here’s a deep dive into how ECI is reshaping the business landscape in the UAE and beyond.

Origin and Establishment

Etihad Credit Insurance (ECI) was established in February 2018 as a public joint stock company, marking a significant step towards the UAE’s vision of economic diversification away from oil dependency. Supported by the UAE federal government and the governments of various emirates, ECI aligns with the UAE’s 2021 Vision to foster a diversified, resilient economy.

As the official export credit agency of the UAE, ECI’s core mandate is to bolster non-oil exports, trade, and investments, enhancing the competitiveness of both small and large businesses on local and international fronts. By offering insurance solutions against non-payment and political risks for UAE-based companies engaged in non-oil export and re-export activities, ECI facilitates a secure environment for business ventures and investments.

ECI’s role in aiding corporate bidding for international tenders further opens avenues for UAE-based businesses to venture into global markets, fostering a competitive stance for the UAE on the international stage.

Learn more about ECI’s establishment and its alignment with the UAE’s economic vision.

Etihad Credit Insurance Core Offerings and Solutions

Etihad Credit Insurance provides a plethora of solutions tailored to mitigate risks and foster growth among businesses. Here are the key offerings:

  • Insurance Against Non-payment: ECI offers insurance solutions to safeguard businesses against customers’ non-payments arising from commercial and political risks, ensuring a secure trade environment.
  • Support for International Tender Bidding: Aiding corporate entities in bidding for international tenders, ECI facilitates global trade opportunities and enhances the competitive stance of UAE-based businesses.
  • Extensive Market Intelligence: With a global network of over 360 million businesses, ECI provides invaluable market intelligence that drives better strategic decision-making for companies venturing into foreign markets.
  • Tailored Solutions for Various Entities: Catering to Exporters & Re-Exporters, Banks & Financial Institutions, Private Credit Insurers, and International Cooperation, ECI’s solutions are designed to meet the diverse needs of the business community.  
  • SME Protect and ECI Islamic: Offering specialized solutions like SME Protect and ECI Islamic, ECI addresses the unique needs of Small and Medium Enterprises (SMEs) and adheres to Islamic finance principles respectively.
  • Project Financing: ECI supports project financing endeavors, ensuring financial stability and business continuity in various project undertakings.

Explore ECI’s comprehensive solutions

Beneficial Impact

The inception of Etihad Credit Insurance has cast a significant positive ripple across the business landscape in the UAE and beyond. Here are some of the beneficial impacts:

  • Mitigation of Financial Risks: By insuring against customers’ non-payments arising from commercial and political risks, ECI significantly reduces the financial uncertainties that businesses may encounter, especially in cross-border trade.
  • Promotion of Business Growth: ECI’s protective umbrella enables companies to expand their trade with a greater sense of security, thereby promoting business growth and sustainability.
  • Reduction of Company Closures: Addressing a serious concern, ECI’s solutions combat the issue of unpaid invoices which has led to 25% of company closures in the region.
  • Market Intelligence:The access to extensive market intelligence through ECI’s global network empowers businesses with better strategic decision-making, thus fostering successful ventures into foreign markets.

Discover the beneficial impact of ECI

Global Outreach

ECI’s role extends beyond the UAE’s borders, showcasing the nation as a competitive player on the global stage. Here’s how:

  • Expansive Global Network: With a network encompassing over 360 million businesses worldwide, ECI’s global outreach is a testament to its vast sphere of influence and the potential for fostering international trade relations.
  • Strategic Decision-Making: The market intelligence garnered from this vast network aids companies in making informed strategic decisions when venturing into foreign markets, thus reducing risks and enhancing success prospects.
  • Fostering International Trade Relations: By aiding in international tender bidding, ECI facilitates the creation of global trade opportunities, promoting the UAE as a thriving hub for international trade and investment.
    Promotion of UAE’s Competitive Stance: The global outreach of ECI amplifies the competitive stance of UAE-based businesses, thus contributing to the nation’s image as a robust player in the international trade arena.

Learn more about ECI’s global outreach

Pros and Cons

Navigating through the offerings of Etihad Credit Insurance unveils a host of advantages along with some considerations. Here’s a succinct breakdown:

Pros:

  • Risk Mitigation: Insurance against non-payment and political risks ensures a safer trading environment.
  • International Tender Bidding Support: Assistance in global tender bidding opens new markets and competitive opportunities.
  • Extensive Market Intelligence: Access to a global network of businesses provides invaluable market insights for strategic decision-making.
  • Diverse Solutions: A broad spectrum of solutions catering to various business entities, including SMEs and financial institutions.

Cons:

  • Focus on Non-Oil Sectors: Companies may need to pivot to align with the non-oil sector focus, requiring adaptation to new market dynamics.
  • Eligibility Criteria:There might be certain criteria to meet for availing ECI’s services, potentially limiting accessibility for some entities.

Explore the full spectrum of ECI’s offerings

Conclusion

Etihad Credit Insurance stands as a robust pillar in supporting the UAE’s economic diversification vision. By offering a gamut of solutions to mitigate risks and foster growth, ECI is significantly contributing to a resilient business landscape in the UAE and on the global stage. Explore ECI’s solutions to navigate the business horizon with greater confidence and insight.

About Author

Rahul Matiwadekar

About Author

Rahul brings more than 10 years of experience in the international banking, insurance, and finance industry, having worked in various roles from advisory to managerial positions. With his extensive knowledge and understanding of insurance, he is here to share his expertise and help you gain a better understanding of insurance products, processes, and more through his easy-to-understand blog posts.