UAE business infrastructure
The UAE has a modern and competitive banking sector, with 51 banks (Oct 2014). 28 of these are foreign banks, representing just under 60% of the total market (HSBC and Standard Chartered account for approximately half of total foreign bank assets). UK banks are well represented, with a largely retail and commercial business base.
Source: Central Bank of the UAE, 13 August 2015
The banking sector weathered relatively well the drawbacks of the international ﬁnancial crisis, thanks to the government injection of liquidity in the capital of banks. Moreover, the banking sector beneﬁts from a strong deposit base.
Although banks in the UAE adopt a cautious stance, some banks, particularly those in Abu Dhabi, offer attractive upside potential while operating in a secure environment. A mid to long-term view should see a healthy growth in the top-line, reduced provisioning requirements, robust earnings trajectory and attractive valuation multiples.
The UAE insurance market, with its AED 18.3 billion written premium income, is the largest insurance market In the GCC region and one of the largest markets in the Arab world. This position has been attained as a result of the extensive development realised by all of the emirates of the UAE during the last few years. Nevertheless, insurance penetration (gross premium as a percentage of GDP) is still on the low side at around 2%, suggesting that there is signiﬁcant space for expansion. The breakdown of gross premium income is AED 2.7 billion for life insurance compared to AED 15.6 billion for non-life insurance.
With a loss ratio of 57%, the UAE insurance market is realising a very satisfactory performance, with the exception of third-party motor insurance. All other insurance classes are performing very well, due in part to the absence of natural catastrophes in this region.
The UAE insurance industry has been less affected by the international ﬁnancial and economic crisis compared with other ﬁnancial sectors, although within the industry, those with exposure to the stock markets have naturally seen a decline.
UAE insurance companies depend to a large extent on reinsurance in order to have the required underwriting capacity and to reduce the risk of concentration and conflagration. The average reinsurance percentage is around 50%.
Local insurance companies have also begun adopting international corporate governance standards and transparency rules, led by the insurance authority and the stock exchange regulations. The majority of insurance companies in the UAE are rated by international rating agencies. Insurance classes subject to compulsory tariffs include motor insurance and third-party motor insurance, by virtue of federal law.
Since the promulgation of the Federal Law No.6 of 2007 establishing the Insurance Authority (Insurance Commission), the body has prepared new rules to reorganise the insurance market, including:
A code of conduct for insurance companies
Anti-money laundering and combating ﬁnancing terrorism activity rules
Regulations concerning brokers' activity, agents, profession loss adjusters, insurance consultants, and actuaries
The Authority will pay close attention to the ﬁnancial regulations of insurance companies. The minimum paid-up capital of these companies has already been increased from AED 50 million to 100 million (AED 250 million for Reinsurance companies)
New rules concerning the ﬁnancial reporting system, public disclosure of ﬁnancial statements, and rules governing the investment policy of insurance companies
Foreign capital was and still is permitted to participate in the capital of national insurance companies within a percentage not exceeding 25%.
Marketing of insurance products
Marketing insurance products in the UAE insurance market is achieved through local ofﬁce brokers and banks. A number of insurance companies have entered into agreements with local banks in order to transact bank assurance.
Insurance companies with Islamic Shari’ah rules are gaining pace in the market, with a 9% market share. A new regulation has been issued by the insurance authority in order to organise and control the activity of this kind of insurance.
Abu Dhabi Securities Exchange
A pillar for economic and social development of Abu Dhabi, the Abu Dhabi Securities Exchange (ADX) was established in November 2000 as a local government entity to become the official stock exchange for the emirate of Abu Dhabi through providing the infrastructure and trading platform for the different securities, enjoying financial and administrative independence and acquiring all the necessary supervisory and executive powers.
Throughout the decade, ADX was able to record significant growth rates as reﬂected in the remarkable increase of transactions and the diversiﬁcation drive to allow for more financial Instruments, especially the bonds market, and hence increase the scale and depth of the exchange.
By early 2015, there were 70 listed companies on the exchange, allowing for investors to trade through any of the registered brokerages at the exchange. ADX has also signed a number of agreements with major ﬁnancial institutions to provide for custody services, including renowned international corporations, namely the National Bank of Abu Dhabi (NBADL HSSC, Standard Chartered, Deutsche Bank and Citi).
In alignment with the Abu Dhabi Government's Economic Vision 2030, ADX aspires to become the leading stock exchange in the Gulf region by leading the development of the UAE capital market through a well-regulated marketplace in a lawful environment that ensures integrity, transparency and disclosure.
Investors can trade securities listed on ADX UK's International FTSE Group, one of the leading stock exchange rating agencies in the world. The upgrade of the UAE from a "frontier" market to an “emerging” market has opened a new chapter for the UAE capital market to attract more international investors and accommodate more portfolios for international ﬁnancial institutions along with other seasoned emerging markets such as China, India and Brazil.
The UAE's ﬁnancial markets in general, and ADX in particular, are relatively young compared with other emerging markets, having only been established in 2000. Yet the country’s relentless efforts to become a primary and innovative regional and international ﬁnancial centre have yielded international recognition, and hence the magnitude of concern and efforts by ADX to implement international best practices, develop its infrastructure and introduce new ﬁnancial instruments and investment vehicles.
In 2007, the Abu Dhabi Government released a policy agenda establishing planning foundations and priorities necessary for the development of the emirate, and this was followed by the release of the Abu Dhabi Government Economic Vision 2030, providing a road map for the economic and social development of Abu Dhabi for a quarter of a century.
It was no surprise that ADX was at the heart of these priorities and plans, thanks to the vital role of ﬁnancial markets in the context of economic and social development through diverting savings towards investment in the various economic sectors, and developing the ﬁnancial infrastructure of Abu Dhabi to transform the emirate into one of the leading innovative ﬁnance and services centres in the region.
Undoubtedly, ADX plays a signiﬁcant role in the emirate's efforts to diversify the economy away from relying on hydro-carbons, supporting non-hydrocarbon production and services such as ﬁnancial services, tourism and real estate, and through the provision of innovative ﬁnancial alternatives to fund the investments in these sectors, as emphasised by the policy agenda and the Economic Vision 2030 reﬂected in the exchange's strategic ﬁve-year plans.
ADX was also able to develop its infrastructure to become a pioneer institution in the ﬁeld of developing electronic services in Abu Dhabi through the introduction of new services at the exchange's website, including ﬁling complaints and automating the disclosure process, in addition to more-efﬁcient applications for reviewing listed companies’ ﬁnancial statements.
ADX is generating reliable feedback necessary for the processes of development and planning through the introduction of new surveys and indexes to assist in identifying areas requiring more attention and development in future plans. These surveys include an investor literacy e-survey introduced towards the end of 2009 used to deduce an investor literacy index, a vital indicator for planning awareness and education programmes.
An investor conﬁdence e-survey was also concluded during the same period for 1,700 investors to develop an investor conﬁdence index, a necessary barometer for awareness programmes, and introducing new ﬁnancial instruments and investment vehicles.
On March 25, 2010, ADX introduced the Exchange Traded Funds (ETFs) trading platform, by listing NBAD's "OneShare Dow Jones UAE 25" ETF, and hence establishing the necessary infrastructure for diversifying investment vehicles and hence attracting more foreign investments by allowing foreigners to trade in ETFs and by permitting UCIT- compliant foreign ETFs incorporated overseas to list in Abu Dhabi.
For more information on the Abu Dhabi Securities Exchange please see: www.adx.ae/English/Pages/default.aspx
Dubai Financial Market
Dubai Financial Market (DFM) was established as a public institution having its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public joint-stock companies, bonds issued by the federal government or any of the local governments and public institutions in the country, units of investment funds and any other ﬁnancial instruments, local or foreign, which are accepted by the market.
DFM has worked with renowned international experts in the design of a trading system which is fair, transparent and efficient, so that investors’ interests are served and the economic objectives of the UAE are met.
Safeguarding the efficiency and integrity of trading requires DFM to conduct regular monitoring and controlling of market activity. The Market Control Section monitors compliance with the trading rules and regulations of ESCA and DFM and helps to ensure that trading is conducted in an orderly manner. The Brokers licensing and inspection section monitors brokers’ conduct to ensure integrity of the brokers’ activities and that the best service is given to investors. The Companies Listing and Compliance Section strives to furnish investors with all the necessary data concerning issuers of listed securities in a timely manner and to co-ordinate with the Market Surveillance Section to forbid the use of inside information.
In 2010, DFM launched a ‘first of its kind’ global service with the iVESTOR card, a revolutionary and innovative solution enabling retail investors to instantly receive DFM dividends directly into their iVESTOR card. With the iVESTOR card, investors no longer have to wait for dividend cheques or have the hassle of depositing cheques into their bank accounts, as this unique card will enable DFM to credit any future dividends directly into the cardholder‘s balance in a flexible and fast way. Additionally, the iVESTOR cardholder can easily withdraw cash from over 650 Emirates NBD ATM's or from any VISA or PLUS marked ATMs worldwide, top-up their balance, as well as make purchases from millions of retail outlets.
Retail investors can benefit from:
Instant credit of any future DFM dividends and other joint stock companies dividends (subscribed to the NESTOR service) directly into their card. No need to wait for cheques
Fast and easy cash withdrawals of dividend payments from anywhere in the world, anytime, via Emirates NBIJ, VISA or PLUS ATMs
Cash top-ups directly onto the card via any Emirates NBD cash deposit machine or branch
Purchase goods/services worldwide via VISA-accepting retail outlets, online sites and more
Dubai International Financial Centre
Dubai International Financial Centre (DIFC) is an "onshore" ﬁnancial centre, offering a convenient platform for leading ﬁnancial institutions and service providers. DIFC has been established as part of the vision to position Dubai as an international hub for ﬁnancial services, and as the regional gateway for capital and investment.
Between the financial centres of Europe and South-East Asia lies a region comprising over 42 countries with a combined population of approximately 2.2 billion people. Yet this vast region, stretching from the western tip of North Africa to the eastern part of South Asia had, until 2004, been without a world-class ﬁnancial centre. DIFC now aims to play a pivotal role in meeting the growing ﬁnancial needs and requirements of the region while strengthening links between the ﬁnancial markets of Europe, the Far-East and the Americas. The mission of DIFC is to be a catalyst for regional economic growth, development and diversiﬁcation by positioning DIFC as a globally-recognised ﬁnancial centre.
The Centre has been designed to attract regional liquidity back into investment opportunities within the region and contribute to its overall economic growth. Since its launch, DIFC has attracted international ﬁrms such as Merrill Lynch, Morgan Stanley, Goldman Sachs, Mellon Global Investments, Barclays Capital, Credit Suisse, Deutsche Bank and many other leading international ﬁnancial institutions, which have all applied for or received a licence to operate from DIFC.
Dubai: Economic dynamism, growth and vision
Critical to DlFC's success is Dubai's established track record of realising innovative projects of scale in an environment that is safe, vibrant and exciting. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has continued to lead efforts that have established Dubai as one of the fastest-growing cities in the world. Dubai has a well-diversiﬁed economy based on international trade, banking and finance, information and communication technology, tourism and real estate. This economic diversiﬁcation is continuing with the establishment of new industries, private sector growth through acquisition and increased regional economic integration and innovation.
Objectives of DIFC
DIFC has been designed to attract regional liquidity back into investment opportunities within the region and contribute to its overall economic growth, facilitate planned privatisations in the region and enable initial public offerings by privately-owned companies, giving impetus to the programme of deregulation and market liberalisation throughout the region – creating added insurance and reinsurance capacity (65% of annual premiums are re-insured outside the region); and developing a global centre for Islamic ﬁnance – now an international market of over US$400 billion serving large Islamic communities stretching from Malaysia and Indonesia to the United States.
Benefits of establishing in DIFC
Institutions receive a number of benefits when joining DIFC, including:
100% foreign ownership
0% tax rate on income and proﬁts
Wide network of double taxation treaties available to the UAE incorporated entities
No restriction on foreign exchange
Freedom to repatriate capital and proﬁts without restrictions
World-class English language court system based on the common law, with judges internationally renowned for handling commercial disputes
High standard of laws, rules and regulations
Ultra-modem office accommodation and sophisticated infrastructure
Operational support and business continuity facilities of uncompromisingly high standard
DIFC sectors of focus
DIFC focuses on the following main ﬁnancial services sectors: banking and brokerage, capital markets, wealth management re-insurance and captives, Islamic ﬁnance, ancillary services.
Banking and brokerage/ capital markets
Businesses in the region have traditionally sourced their funding from domestic lenders at often inefficient, expensive and illiquid cost. Similarly, underdeveloped capital markets have forced local investors and borrowers to seek opportunities in international markets. However, the growing programme of liberalisation and privatisation in the region, a rising need for IPOs and secondary offerings, the growth of foreign direct investment, and rapid expansion of regional trade, is driving demand for more-sophisticated forms of ﬁnancing. DIFC acts as a catalyst to facilitate the mobilisation of capital. It intends to be the regional gateway for investment banks and other financial institutions who wish to establish underwriting, M&A advisory, venture capital / private equity, foreign exchange, trade ﬁnance and capital markets operations to service this large and relatively untapped market.
DIFC provides an onshore centre offering a wide range of investment opportunities, such as: mutual funds, exchange traded funds, open and closed- ended investment companies, index funds, hedge funds, consultant wrap accounts and Islamic-compliant funds. Further, DIFC will provide an ideal environment and a highly-skilled workforce to asset management ﬁrms and private banks for their fund registration and administration functions.
Insurance, reinsurance and captives
The penetration and density of insurance in the region has been signiﬁcantly below average world levels. Statistics show that the sum of insurance premiums in the Middle East is considerably below that of developed or other developing markets. However, with economic growth, industrialisation and improved regulation, the region is experiencing a changing attitude towards risk and an increased awareness of the need for insurance.
Due to slow growth in more mature markets, the world's insurance and reinsurance companies are now assessing markets such as the Middle East. DIFC has set out to create a global insurance hub by attracting global reinsurance companies, brokers, captives and other service providers.
Islamic finance and banking was estimated to be worth around US$1 trillion dollars in 2014 and is destined to grow more than four times the rate of conventional investing, according to analysts at Deloitte & Touche. The industry is expected to surge 28.6% a year and have a value totalling US$5 trillion by 2016. DIFC's innovative ambition to become the global hub for Islamic ﬁnance comes at a very interesting time in the market's development.
Each Islamic market has developed relatively independently, setting its own regulations and standards, developing a wide variety of products with different benchmarks and pricing techniques. This has now been recognised as untenable if the industry is to grow, to respond to the needs of Islamic investors and be given global recognition. There is increasing recognition that collaboration is the key to competitiveness. DIFC's innovative ground-up approach puts Dubai in a leading position to establish global standards for Shari'ah compliance that will foster cross-border trading and product innovation.
In addition to the above sectors of ﬁnancial activity, DIFC will continue to attract high-calibre, reputable ancillary service providers, thereby providing a fully robust platform to support the operational needs of ﬁnancial institutions. These services will include accounting and legal practices, actuaries, management consultants, recruitment ﬁrms, and market information providers, among others. The expertise that the world's major international professional services ﬁrms bring to DIFC will complete the process of building a world-class international ﬁnancial centre. DIFC offers these service providers with the kind of unique opportunities that can come only from locating their operations in a hub which is in close physical proximity to a wealth of innovative business opportunities, including signiﬁcant cross-border synergies across multiple industries and functions.
As with established international ﬁnancial centres, at the heart of the overall DIFC concept is an independent regulator, the Dubai Financial Services Authority (DFSA). The independent status of the centre is further enhanced by the establishment of the DIFC Courts. The laws establishing the DIFC Courts have been designed to ensure the highest international standards of legal procedure, thus ensuring that they provide the certainty, ﬂexibility and efﬁciency expected by the global institutions operating within DIFC.
Infrastructure and location
The physical infrastructure is also a major factor in enticing international business to locate in DIFC. So much more than just a ﬁnancial district, DIFC is an innovative ‘city within a city’ that comprises a unique integration of buildings and open spaces with over 65% of the total site landscaped with speciﬁc green zones. It provides over several million square feet of ultra-modern office space, residential and leisure areas including offices, serviced apartments, hotels, shops, restaurants, a museum, an art gallery and a performing arts centre.
Guaranteeing DIFC's success is its location. The cosmopolitan city of Dubai has a safe, secure, economically, politically and socially-stable environment with superb infrastructure and a highly skilled, educated and multi-cultural workforce.
With such a sophisticated physical infrastructure, an innovative, visionary leadership and a stringent regulatory framework, DIFC is poised to tap the largest emerging market for ﬁnancial services within a region of 2.2 billion people and a combined economy worth US$2.3 trillion in terms of GDP, growing at an annual rate in excess of 5%. The world’s newest international ﬁnancial centre has become a reality and both the region and the world's ﬁnancial community are set to beneﬁt.
Entities and subsidiaries of DIFC
The DIFC Authority is responsible for developing strategy and providing direction and supervision to the Dubai international Financial Centre. It works to attract licensees to operate in DIFC and creates laws and regulations that govern non-financial services activities. One of the DIFC Authority's main tasks is to develop the ﬁnancial services industry in Dubai.
The DIFC Centre of Excellence
The DIFC Centre of Excellence was established as an innovative hub for executive and professional development and education. The centre was created by the Dubai International Financial Centre (DIFC] and reaches out to professionals within the Middle East, North Africa, Eastern Africa, the Caspian Subcontinent and the Indian Subcontinent. The centre is situated within DIFC, the world's fastest-growing ﬁnancial centre and at the heart of cosmopolitan Dubai. The DIFC Centre of Excellence aims to develop a talent pool of innovative professionals for and from the region through partnering with top ranking business schools, professional development providers, corporate universities, as well as certiﬁcation, accreditation and rating organisations.
Innovative partners and programmes include: London Business School (EMBA, executive education programmes, and custom designed programmes), Cass Business School (offering the world's ﬁrst EMBA with a specialisation in Islamic Finance in the world from DIFC, Energy or General Management and Finance), Queens School of Business (executive education programmes), Securities and Investments Institute (SII) (finance training, examination and certiﬁcation activities), the Chartered Insurance Institute (CII) (membership in the CII and Certiﬁed Insurance and Finance programmes), and the International Bar Association (IBA). In order to accommodate the needs and interests of busy professionals, the DIFC Centre of Excellence offers a mix of programmes, from one-day workshops up to a higher degree.
Hawkamah, the Institute for Corporate Governance, is an international association of corporate governance practitioners, regulators and institutions whose primary mandate is to develop corporate governance best practices in the Middle East region, including the promotion of institution building, corporate sector reform, good governance, market development and increased investment and growth across the region. Please see www.hawkamah.org
Mudara, the Institute of Directors (IOD), was established by DIFC to facilitate professional development through education, networking and services to its members.
DIFC- LCIA Arbitration Centre
Dubai is positioned as an international arbitration jurisdiction with the establishment of the DIFC-LCIA Arbitration Centre. Please see www.difcarbitration.com
DIFC Global provides premium office facilities that support companies in developing their business globally. Currently established in Dubai, London and Hong Kong, DIFC Global is creating a network of premium offices in the world’s major ﬁnancial hubs. DIFC Global's offerings are ideal for companies looking to conduct feasibility studies, evaluate future potential, collaborate on joint ventures, or scout for new business in the world's largest established and emerging ﬁnancial markets. Please see: www.difcglobal.ae
Dubai Financial Services Authority (DFSA)
The Dubai Financial Services Authority is the independent regulatory authority responsible for the regulation of ﬁnancial and ancillary services conducted in or from the Dubai International Financial Centre. The DFSA’s primary functions include policy development, enforcement of legislation and authorisation and supervision of DIFC licensees. It manages companies offering asset management, banking, securities trading, Islamic ﬁnance, and re-insurance, and it regulates the Nasdaq Dubai exchange. Please see: www.dfsa.ae
The DIFC Courts is an independent judicial system established under laws enacted by the late H. H. Sheikh Maktoum bin Rashid Al Maktoum, ruler of Dubai in September 2004. It has jurisdiction over matters arising from and within DIFC. Please see: www.difccourts.ae
Firms wishing to carry out financial services in DIFC need to be authorised by the DFSA, which requires a demonstration of fitness and propriety. Guidelines include:
An applicant’s relationship with a group entity and the regulatory history of the group. Firms which are subject to regulatory supervision in other comparable jurisdictions will be in a better position to demonstrate their ability to comply with the stringent regulatory requirements of DIFC
An applicant's capability in terms of financial resources, human resources and technical competency
An applicant's ability to devise and maintain appropriate systems and procedures to support, monitor and manage its affairs, resources and regulatory obligations, including sound anti-money laundering policies and procedures
A sound business plan and the experience and qualiﬁcation of the organisation and the key personnel within it
The ability and willingness of an organisation to comply with regulations Including levels of capital adequacy, high standards of business conduct and a robust risk management system
When considering an application for a licence and assessing the fitness and the propriety of the applicant, the DFSA will also consider:
Any matter which may harm the integrity or reputation of the DFSA or DIFC
The activities of the applicant, the associated risks and accumulation of risks that those activities pose to the DFSA's objectives
The cumulative effect of factors which, if taken individually, may be regarded as sufficient to give reasonable cause to doubt the fitness and propriety of an applicant. An applicant must be able to demonstrate that it has compliance arrangements, including processes and procedures that will enable it to comply with all applicable rules
Authorised Firms must comply with the Conduct of Business (COB) Module which entails adherence to the following best principles and practices:
- Due skill, care and diligence
- Management, systems and controls
- Market conduct
- Conﬂicts of interest
- Customer assets and money
- Relations with regulators
Trade and export facilitation
The Dubai Export Development Corporation (EDC) was established to provide exporters with the services required to enter or expand into foreign markets. EDC is the trade promotion arm of Dubai Economic Department and its mission is to empower and diversify Dubai's economic growth by offering innovative pioneering export services to businesses.
The strategic objectives of EDC are to maximise value of exports through Dubai and enhance the industrial sector’s contribution to GDP, widen Dubai's exporter base by support of businesses in the production of internationally competitive goods, facilitate exports into unexplored/high potential markets while accelerating market share in such target countries, and augmenting the industrial sector's export capabilities/capacities through diverse innovative initiatives that support their growth.
EDC's service model includes:
1. Export preparation:
Export capability assessment
Market intelligence & trade Information
Export assistance/referrals through partners
Export guides & publications
2. Export facilitation:
Identify, match buyers
Provide export opportunities/UAE export directory
Referrals and advocacy with government partners
Local/international events & missions
Provision of value-added services, e.g. export credit insurance
Facilitate international export intelligence
Assistance through EDC overseas trade offices and international partners
3. International assistance:
Qualiﬁed buyer identiﬁcation
On-the-ground market information & assistance
Matchmaking in EDC overseas office countries
Facilitation in outward missions
Facilitate investment partnership
Export Credit Insurance Company of the Emirates
The Export Credit Insurance Company of the Emirates (ECIE) was established as part of H.H. Sheikh Mohammed Bin Rashid Al Maktoum's vision, in his capacity as Vice President and Prime Minister of the UAE and Ruler of Dubai, to help UAE-based companies make use of opportunities to grow their exports safely.
ECIE primarily helps companies increase their export business by providing them with necessary protection against trade credit risks, thereby allowing them to manage their commercial and political risks better, and help safeguard their balance sheets and increase proﬁtability.
ECIE offers short-term trade credit insurance policies to companies based in the UAE which are engaged in manufacturing, value-added trading and, the export of services. Insurance policies tailored by ECIE cover a seller against the risk of non-payment by its customers.
ECIE's partnerships include those with Coface – the global expert in credit risk analysis and trade receivables management, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) – the globally-acclaimed Islamic multilateral based in Saudi Arabia, and the well-reputed Arab Investment & Export Credit Guarantee Corporation (DHAMAN) based in Kuwait.
An export credit guarantee is a form of insurance that covers an exporter if the importer or the importer's bank defaults on payment. ECIE’s business activities are governed by the UAE Insurance Authority, and its relations with companies and banks are conducted on a commercial basis.
ECIE is a member of the prestigious Berne Union Prague Club – an elite association of reputed global trade credit risk solution providers. In addition, ECIE is a fully-ﬂedged member of the General Organisation of the Credit Alliance – an association of trade credit risk insurers and related service providers supported by Coface. ECIE also occupies a key seat on the board of the Aman Union – an association of Arab and Islamic trade credit insurers.
Receivables Protection package includes the following major services:
Credit risk analysis, assessment and continuous monitoring
Debt collection and recovery
Indemniﬁcation in case of a claim filed by the policyholder (the seller)
ECIE covers both commercial and political risks, and their product range includes:
Short-term credit risk insurance (insuring credit sales where the credit period is not more than 360 days) as well as, medium/long-term credit
Risk insurance (on a case-by-case basis where the credit period is between one and seven years)
Foreign investment insurance (ECIE covers the political risks that a UAE-based company is exposed to by virtue of investing in a project via a plant, etc. overseas)
A policyholder can choose between a conventional and a Shariah-compliant insurance policy
Past history is not necessarily an indicator of the future which is why the ﬁnancial standing of a company remains an unknown factor. ECIE's credit insurance policy helps mitigate this risk by protecting a company’s trade receivables.
Intense competition forces sellers to sell on unsecured terms which could put the seller at grave risk, especially if a major buyer defaults on payment, thus leading to a catastrophe – the seller will be able to leverage on ECIE’s expertise and avoid such a scenario.
ECIE's credit insurance policy helps a company increase its exports as well as domestic sales, and secure its proﬁtability by facilitating adequate credit based on the credit risk assessment and insurance commitments provided by ECIE.
ECIE policy provides access to banking facilities primarily required for funding working capital when a company is in ‘growth mode’. The seller will be able to focus on achieving its core objective – production, marketing and sales, while ECIE manages the associated credit risks.
ECIE acknowledges that manufacturers, traders and service providers in the UAE play a special role in driving the economic growth of the country, and ECIE’s innovative products and services are designed to add maximum value in an effort to facilitate sustainable economic development and prosperity.
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