The UAE's federal export credit company, Etihad Credit Insurance, is partnering with the Saudi Fund for Development to facilitate trade between companies in both countries and the rest of the world.
The organisations would provide export credit guarantees to boost non-oil exports by UAE and Saudi companies.
“ECI’s partnership with SFD is forming when the UAE-Saudi Arabia relations are strengthening," said Massimo Falcioni, chief executive of ECI. "ECI believes this partnership will boost the plans of both economies."
He said the tie-up would grant UAE companies access to new markets and intelligence, supported by ECI's trade credit lines.
ECI began operating in February 2018 to support exports by providing export credit and guarantees to UAE companies selling abroad. It has been assigned a credit rating of "AA-" with a stable outlook by Fitch Ratings.
The Saudi Fund for Development has financed programmes covering education, health, transport, agriculture, energy and water in developing countries since the 1970s.
"We believe our alliance with ECI will prove to be beneficial for the SME industries that will help to surpass the challenge of funds faced by SMEs,” said the fund's vice chairman and managing director, Khaled Al Khudairy.
Under the agreement, the two institutions will collaborate on areas including insurance, reinsurance and collections, as well as sharing commercial and credit opinion information. They will also co-operate on technical training, trade promotion and SME initiatives.
According to a UAE Ministry of Economy report, the UAE's non-oil export and re-export trade to Saudi Arabia stood at Dh79.6 billion in 2018, which was a 47.7 per cent increase on 2017.
ECI is providing credit insurance to businesses of all sizes exporting abroad. Last month, it agreed to a deal to cover for international trade credit extended to Dubai steel maker Conares, allowing it to explore new markets for its steel pipes and rebar business. In December, ECI agreed to a similar deal with Dubai Cable Company, which is jointly owned by the Investment Corporation of Dubai and Abu Dhabi's industrial holding company, Senaat.
