Abu Dhabi: Etihad Credit Insurance (ECI), the UAE's federal export credit company, has announced a significant year of growth, achieving an insured turnover of AED16.2 billion, marking a 15.7% increase over the previous year. This accomplishment was highlighted in ECI's 2024 Annual Report and accounts for 2.85% of the UAE's total non-oil exports.
According to Emirates News Agency, the announcement was made during a media briefing headed by Raja Al Mazrouei, ECI's Chief Executive Officer, alongside other senior officials. These figures emphasize ECI's growing impact in supporting UAE-based exporters and investors through strategic credit solutions across more than 100 countries and 17 strategic sectors. In 2024, the UAE's non-oil foreign trade reached AED 3 trillion, reflecting a 14.6% increase from the previous year.
ECI's efforts are crucial to the nation's goal of achieving AED800 billion in non-oil exports by the next decade, in line with the 'We the UAE 2031' economic objectives. Since its establishment, ECI has facilitated AED 21 billion in cumulative export trade and investment, resulting in a Gross Written Premium (GWP) of AED447 million. This demonstrates significant portfolio growth and a strong retention rate.
Abdulla Bin Touq Al Marri, the Minister of Economy and Chairman of ECI's Board of Directors, praised the UAE's advancements towards a resilient, innovative, and knowledge-based economy. He highlighted the importance of economic diversification, with non-oil sectors contributing 74.6% to the UAE's GDP, and ECI's significant role in this transformation. By enabling UAE businesses to compete globally, ECI is instrumental in expanding non-oil export growth and enhancing the country's economic stature.
Bin Touq also noted ECI's credit guarantees for infrastructure and energy projects in African markets like Angola and Senegal, supporting UAE's strategic global partnerships and inclusive economic development. In 2024, ECI provided insurance solutions for projects advancing clean energy, food security, and infrastructure, reflecting its commitment to creating a trade ecosystem addressing global challenges like climate change.
The report highlighted ECI's gross exposure of AED 11 billion, a 14.58% increase over 2023, supported by a diverse portfolio where SMEs form over 60% of beneficiaries. ECI maintained an AA- international rating from Fitch for the sixth consecutive year, showcasing its risk mitigation capabilities and strong global market presence.
Raja Al Mazrouei expressed ECI's commitment to UAE's economic resilience and sustainability through innovative credit solutions and strategic partnerships. In 2024, ECI launched Xport Xponential, a program supporting UAE companies, reinforcing its commitment to increasing its non-oil GDP contribution by sevenfold by 2031.
Al Mazrouei also reaffirmed ECI's dedication to clean energy initiatives aligned with the UAE's sustainability goals and the UN's Sustainable Development Goals. The Africa Green Investment Initiative (AGII), led by the UAE, aims to deploy $4.5 billion in African renewable energy by the decade's end, furthering climate action and socio-economic development.
The report revealed ECI's coverage of up to AED500 million per risk, backed by nine reinsurers rated 'A' and above, ensuring a robust reinsurance treaty. ECI's commitment extends beyond credit insurance, with effective handling of overdue payments leading to AED 158 million collected, raising the total debt recovery to AED528 million since its inception.
ECI's portfolio composition includes 70% in Short-Term Credit Insurance, supporting trade cycles in manufacturing, ICT, and agri-exports, while Medium and Long-Term commitments cover 17%, emphasizing ECI's role in infrastructure and energy sectors. Political Risk Insurance accounts for the remaining 13%.
Geographically, Saudi Arabia is ECI's largest export market in the Gulf and MENA region, comprising 7% of total exposure. ECI also supports exports to Egypt, Oman, Qatar, and Bahrain, as well as significant trade flows to Asia, Europe, and America. ECI has signed around 28 agreements with international export credit agencies, strengthening its position as a trusted global trade partner.
Lastly, ECI plans to leverage the UAE's Comprehensive Economic Partnership Agreements to enhance trade and commercial relations, supported by ECI's extensive information database, providing UAE exporters with critical insights.