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JAFZA and ECI Collaborate to Offer Credit and Export Financing Solutions

JAFZA and ECI Collaborate to Offer Credit and Export Financing Solutions

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Jebel Ali Free Zone, Jafza, flagship free zone of DP World, UAE Region’s leading business and logistics hub showcased its customers the trade payments protection solutions it has initiated in partnership with Etihad Credit Insurance, ECI, the UAE Federal export credit company on 19th November 2020.

Jafza has launched ECI’s tailored solutions to support UAE based businesses and increase export trade by offering protection against commercial and non-commercial risks.

During a well-attended webinar titled, “Etihad Credit Insurance Collaboration: Trade with Protection”, Jafza based companies were guided through the ECI’s solutions as part of the free zone’s drive to ensure the growth of businesses, while lowering the cost of export, by reducing the risk of non-payments, and funding, by lowering banking pre and post-shipment funding in the current unprecedented economic climate.

More than 8000 companies in the Jebel Ali free zone are set to directly benefit from the strategic collaboration of Jafza and ECI, giving the export business a major boost and a competitive edge in the regional and global markets.   

Jafza’s partnership with ECI will be a game-changer for the export of goods and services as ECI’s support increases cash flow,  enables trade and contributes towards sustaining growth even as the markets recover.

Jafza believes that ECI’s range of export credit, financing and investment insurance products will directly benefit Jafza’s customers, particularly the SMEs.

The shared objectives of ECI and Jafza represent the vision of the leadership to establish the UAE as a preferred global hub for exports. Jafza is working closely with ECI to take this partnership forward and reinforce its commitment to business continuity with confidence.

ECI has issued more than 1600 revolving credit guarantees additionally for a total exposure amount of Dhs. 2 billion in the first half of 2020, which is equivalent to Dhs. 4 billion guaranteed non-oil trade coverage. About 55 per cent of the total revolving credit limits were issued to large private exporters and 17 per cent to SMEs, while the remaining 38 per cent were issued in favour of UAE Government companies.

The main sectors to benefit from this credit lines are Foods and Beverages, Healthcare and Pharmaceuticals, Automotive, Petrochemicals, Cable, Steel and Building materials, accommodating some of the major sectors present in the free zone. ECI’s solutions were chosen by Jafza for its customers after carefully analyzing the advantages they deliver.

The range of conventional and Shariah-compliant export credit financing and investment insurance solutions offered by ECI cover the exporters and the entire supply chain against commercial and political risks, allowing Jafza customers to manage and mitigate risks effectively.

Jafza, which generated trade worth 99.5 billion USD in 2019, is widely responsible for promoting the non-oil sector of Dubai and the UAE,

ECI plays the role of a catalyst in accelerating the country’s non-oil economy trade, investments, and strategic sectors development, in line with the UAE National Agenda leading to the UAE Vision 2021.

Jafza is one of the world’s leading free trade zones and is home to over 8000 multinational companies. Jafza accounts for 23.9% of total FDI (Foreign Direct Investment) flow into Dubai, sustaining the employment of more than 135,000 people in the United Arab Emirates.

Jafza has a strategic location providing market access to more than 3.5 billion people and creates an integrated multimodal hub offering sea, air and land connectivity, complemented by extensive logistics facilities. The port and free zone contributed 33.4 per cent of Dubai’s GDP in 2017. Jebel Ali Port and Free Zone are considered by the global business community as the most ideal location for a business set up in Dubai.

Jafza is the most sought after business hub between Asia, Europe and Africa, connecting some of the fastest growing and consumer markets globally. With over 30 years’ experience, Jafza focuses on long term customer relationships, building alliances with multinational investors and providing world-class infrastructure and support.

Jafza, a business opportunity provider offers its customers easy and efficient access to substantial business opportunities in the region. The Jafza ECI collaboration will further boost FDI flow and more number of global investors are expected to opt for Jafza company formation.

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