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The Birth of Export Credit Agencies

The aftermath of World War I had left the world economy in disarray, with nations struggling to recover economically and trade at a standstill. During this period of turmoil, the first Export Credit Agency (ECA) was established in 1919 by the United Kingdom. The primary goal was to encourage and facilitate exports that may not have occurred otherwise, providing a vital boost to the global economy. Over a century later, more than 80 ECAs operate worldwide, each supporting their national exporters and thus contributing to economic growth.

The Need for Credit Insurance

Over 90% of world trade relies on cash or short-term credit, making credit insurance essential to mitigate risks of non-payment, delays, political instability, and economic uncertainties. Transactions may be jeopardized by factors such as a trading partner’s creditworthiness, uncertainties in the importing country, political instability, and other economic insecurities. This is where credit insurance becomes essential, providing a safety net for exporters against these risks.

Guardians of Global Trade

Export Credit Agencies (ECAs) are more than just providers of credit insurance. They act as guardians of global trade, offering comprehensive risk management services that include credit insurance, financial support, and cultivate global market intelligence. These services are integral for shielding exporters and financial institutions from the uncertainties of the global market, ensuring secure and risk-free exports.

Secure, Risk-Free Exports from the UAE

In alignment with the UAE’s vision for a resilient export community and the 'We The UAE 2031' agenda, the Etihad Credit Insurance (ECI) was established in 2018 as the UAE’s federal export credit company. ECI focuses on strengthening non-oil exports and re-exports, serving as a national instrument and strategic partner for UAE businesses to flourish abroad. Over the past five years, ECI has played a crucial role in enhancing the competitiveness of UAE exports globally.

ECI's Remarkable Achievements

Since its inception, ECI has enhanced the global competitiveness of UAE exports, achieving AED 10 billion in gross exposure and facilitating AED 14 billion in non-oil trade and investments.

ECI’s coverage extends to 110 global destinations, protecting over 100 clients’ businesses across 17 sectors. ECI’s consistent AA- rating from Fitch further underscores its financial stability and reliability. Additionally, ECI has recovered AED 450 million in debts and formed strategic partnerships with over 50 entities, in keeping with the UAE’s net-zero emissions target.

Conclusion

The evolution of export credit agencies, from their inception in 1919 to their current global prominence, highlights their indispensable role in international trade. In the UAE, ECI continues to be a driving force behind the country’s non-oil export growth, contributing to the nation’s economic resilience and global competitiveness. As the world continues to navigate economic uncertainties, reliable ECAs like Etihad Credit Insurance will remain crucial to sustaining and safeguarding international trade.

Ready to expand your global reach? Find out how Etihad Credit Insurance can protect and grow your business today!

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