Etihad Credit Insurance (ECI), the UAE Federal export credit company, has signed a memorandum of understanding (MoU) with the National Bank of Ras Al Khaimah (RakBank) to assist local SMEs in accessing international markets via a number of financial services and educational tools. 

The MoU was signed by Massimo Falcioni, chief executive officer at ECI, and Peter England, chief executive officer at RakBank, in the presence of other senior officials from the respective institutions, said a statement.

Under the agreement, UAE-based businesses will gain access to a portfolio of financial services and solutions such as trade credit insurance (both conventional and Murabaha), credit risk management solutions, SME funding, export financing, corporate financing and letters of credit confirmation, it said.

According to the Ministry of Economy, the SME sector comprises 94 per cent of the total number of companies in the UAE and provides employment for over 86 per cent of the private sector workforce.

The UAE government is committed to boosting the contribution and performance of local SMEs and has taken a leading role in establishing strategic initiatives to support funding for the sector.

The partnership is aligned with the UAE’s drive to enhance non-oil industries, thereby promoting diverse and sustainable growth for the UAE economy. Local SMEs will also benefit from access to market intelligence and a series of seminars that will advise business owners on the importance of trade protection solutions when expanding into new markets.

Falcioni said: “SMEs play a crucial role in the development of the UAE economy. From job creation to innovation and growth, their contribution to the country’s economy is substantial.”

“We are pleased to partner with RakBank, a dynamic financial institution in the UAE, that is not only known for its extensive range of conventional and Shariah-compliant banking services but for its solutions for supporting the advancement of the SME sector,” he said.

“The MoU with RakBank provides a direction towards supporting the UAE’s diversification strategy and achieving ECI’s objectives in line with UAE Vision 2021. This agreement will assist the expansion of the SME sector by offering market intelligence and easier access to financial solutions, encouraging local businesses to contribute directly to the sustainable development of the UAE economy while tapping into new geographies,” he added.

England said: “This partnership is in line with one of our core strategic pillars – to diversify our offer for business customers beyond regular lending.”

“We are pleased to be working with ECI to provide business owners with the set of tools needed to ease the access to new markets and grow their businesses, which in turn will stimulate the UAE economy’s growth,” he said.

“Our approach is to offer customers a complete suite of financial products and advisory services to help them grow and achieve their business objectives,” he added. – TradeArabia News Service