The Export finance arm of Abu Dhabi’s Fund for Development, the Abu Dhabi’s Exports Office (ADEX), had signed up a $30 Million trade financial agreement with the Eastern as well as Southern African Trade and Development Bank (TDB) to boost trade between the UAE and the lender’s associate states.
The partnership is the primary of its kind to be signed by ADEX with a foreign financial institution and is anticipated to provision both exporters and importers as the global economy faces hurdles due to the coronavirus pandemic.
The acting director general of ADEX, Saeed Al Dhaheri, stated out that; “This is not only a difficult time for UAE exporters, but it is also a challenging time for their overseas buyers, particularly smaller importers who cannot access any direct credit facilities from export-financing institutions.”
Mr Al Dhaheri also further added that; “Both are dealing with liquidity and cash flow issues, delayed supplier payments and limited access to financing. Through our partnership with TDB, we intend to provide a solution to these challenges that enables both the exporter and importer to fund mutually beneficial transactions quickly and easily.”
Prior to this year, ADFD owed Dh735 million ($200m) to the Abu Dhabi Exports Office to outgrowth economic divergence and boost exports.
Adex was set up preceding year by ADFD to benefit drive global trade by offering up the loans and guarantees to foreign buyers overviewing for to import goods and services from the UAE.
The TDA is composed up of 22 member nations from Eastern and Southern African states extending from Egypt in the north to Zimbabwe in the south. It also accounts for a number of multilateral bodies as members including the Africa Reinsurance Corporation, the African Development Bank and the Opec Fund for Development.
TDB group managing director and chief executive, Admassu Tadesse, further stated that; “the trade between the UAE and Africa has doubled over the past five years, while it has grown about eight-fold in the past 15 years. The statistics signal a growing interest of businesses in the UAE and our region to build stronger trade relations.”
The UAE, the second-biggest Arab economy, has engaged a number of steps to provision local exporters during the COVID-19-induced slump down.
A cooperation agreement was also signed between both institutions to endorse trade between the UAE and Africa. ADEX and TDB will discover possibilities of co-financing qualifying dealings and beginning an additional line of credit.
Etihad Credit Insurance, the UAE’s federal export credit agency, contracted a deal the preceding month with Emirates NBD to progress access to trade finance for exporters. ECI also signed an agreement with the African Trade Insurance Agency in March to progress insurance and financing abilities to provision trade advancement between the UAE and Africa.