The Abu Dhabi Department of Economic Development (ADDED) announced the completion of the first phase of the financial ecosystem program for industrial facilities in the Emirate of Abu Dhabi, which is implemented by the Industrial Development Bureau, an affiliate of ADDED. The program aims at enhancing the credit environment for the industrial and commercial sectors by motivating banks to compete and provide prominent financing services and products to the economic sectors across the Emirate of Abu Dhabi.
In this context, the program succeeded in its first phase, in cooperation with the Etihad Credit Insurance Company, a credit protection company established by the federal government of the UAE, to enable 9 industrial facilities in the Emirate of Abu Dhabi to obtain export credit insurance on their turnover, after conducting several awareness workshops organized by the Industrial Development Bureau for exporting industrial companies.
Furthermore, the total value of insured turnover for the benefited industrial facilities amounted to 2.144 billion dirhams since March 2020, with 1.588 billion dirhams for metal industries, 367 million dirhams for the plastic and glass industries, 100 million dirhams for construction industries, 70 million dirhams for chemical industries, and 19 million dirhams for electrical and electronic industries.
The financial ecosystem program, in its second phase that commences with the start of the next year, aims to secure export credit insurance for 28 industrial facilities in Abu Dhabi, with a total turnover value of 7.5 billion dirhams, including metal, electronical electrical, chemical, plastic, glass, construction, food, wood, paper, machinery and equipment industries.
His Excellency Mohamed Ali Al Shorafa, Chairman of ADDED, stated that the financial ecosystem program for industrial facilities in the Emirate of Abu Dhabi aims to increase competitiveness within the financial sector, enhance the financial ecosystem, increase the economic impact and return of the industrial sector through exports, in addition to increasing access to financing.
His Excellency stated that the Industrial Development Bureau is working in cooperation with the Abu Dhabi Digital Authority to provide a digital platform through which the financial ecosystem program is implemented through the integrated services system "Tamm". The integration will ease the process for business owners to obtain the appropriate financing for their entities in an easy and accessible manner that is compatible with the nature of their economic activity. The program, in its first phase, is currently available through the website of the Abu Dhabi Department of Economic Development added.gov.ae.
The Abu Dhabi Department of Economic Development, represented by the Industrial Development Bureau, signed a memorandum of understanding with Etihad Credit Insurance (ECI), the UAE Federal export credit company, with the aim of providing trade credit protection solutions for Abu Dhabi registered industries on their exports. The agreement will enhance the level of trade credit protection for private sector companies dealing with foreign markets, secure the emirate's local product exports in foreign markets, and strengthen local supply chains.
Massimo Falcioni, CEO of ECI, said: “As the UAE Federal export credit company, Etihad Credit Insurance can significantly impact the governments' initiatives to empower and expand the UAE's vision to become a sustainable national economy. Obtaining appropriate payment protection is crucial for any industry to thrive in a competitive marketplace and we are committed to boost the growth of UAE businesses. We are pleased to see Abu Dhabi exporters achieve these positive results and we will continue to enable them to contribute to the ambitious goals set by the 'Operation 300bn' and 'Make it in the Emirates,' both aimed at turning the UAE into a manufacturing powerhouse and positioning it as a global industrial hub.”
During the first phase of the implementation, the Industrial Development Bureau has also signed memorandums of understanding (MoUs) with ten leading national banks in the UAE with the aim of creating a stimulating credit environment for the industrial and commercial sector in Abu Dhabi. The program will serve to motivate banks to compete in providing distinct financing services and products for the economic sectors within the Emirate of Abu Dhabi.
The program aims to enhance the financial ecosystem which contributes to promoting and stimulating investment in the local industrial sector, thus creating a smooth investment environment for foreign direct investment, with the aim of strengthening supply chains associated with the local industrial sector including logistical services, supply, marketing, transportation and packaging activities.
