Benefits of credit insurance to domestic and export trade explored at DEDC seminar

The day long event was attended by leading business men and government officials from the UAE, who were briefed on the strategic value of the scheme in boosting domestic as well as export related trade activities in the UAE.

The seminar, one among many similar events held under the auspices of the DEDC, aims to educate key industry leaders on various activities undertaken by the corporation to deliver value-added support services for exports and the fledgling manufacturing sectors in the UAE, particularly Dubai.

"DEDC's expressed commitment is to solidify Dubai's position as the regional hub for export oriented trade," said DEDC Chief Executive Officer, Engineer Saed Al Awadi. "The Export Credit Insurance Scheme forms part of a wider portfolio of services that DEDC has structured to enhance the competitiveness of Dubai-based exporters as they tackle regional and global markets, with their products and services."

"Export Credit Insurance scheme is a valuable tool in invigorating trade as it helps increase a business's sales by limiting credit exposures while at the same time enabling it to offer competitive credit terms to a wider customer base. Such impetus to businesses is vital to the economy as it increases trade volumes both in the short as well as in medium and the long term," explained Al Awadi.

Key topics addressed in the seminar included issues such as trade finance risks, types of insurance, credit insurance benefits, global case studies in export credit insurance, and credit insurance products that adhere to Islamic Principles and Shariah.

"Within the Export Credit Insurance Scheme, we are pursuing a regulatory framework that brings the scheme-based transactions in the purview of the Shariah," said Al Awadi. "Currently we are actively working towards establishing partnerships with local financial institutions and governmental bodies to enable the growth of Dubai as a global export and re-export hub."
Recently figures show that Dubai's total non-oil foreign trade grew by 29.6% in 2007, defying slower global economic growth witnessed in the same period while total non-oil foreign trade increased by Dhs155bn. It reached Dhs678.5bn in 2007, compared to about Dhs523.5bn in 2006. Dubai's direct exports in 2007 increased 48% to reach Dhs27bn compared to Dhs18.3bn in 2006.

"DEDC's is committed to fully exploit this potential, by enabling environment for exports, including the simplification of export procedures and formulation of a sound export diversification strategy. We are confident that our strategies will contribute towards bringing about of long term strategic and economic benefits to the people of the UAE and that of the wider region," concluded Al Awadi.