Etihad Credit Insurance (ECI), the UAE Federal Credit Insurance Company has signed three strategic MoUs, respectively, with China Export and Credit Insurance Corporation (SINOSURE ), Industrial and Commercial Bank of China (ICBC) and Bank of China aimed at boosting trade, investments and bilateral exports between the United Arab Emirates and the People's Republic of China.
The ceremony took place during the UAE–China Economic Forum held in Beijing on July 22nd as part of the 3-day state visit of H.H. Sheikh Mohammed Bin Zayed Al Nayan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to the President of China Xi Jinping.
The Economic Forum, celebrating 35 years of close relationships between UAE and China, was chaired by H.E. Eng. Sultan Bin Saeed Al Mansouri, the UAE Minister of Economy, and Deputy Chairman of the Board of Directors at ECI; and H.E. Zhong Shan, China Minister of Commerce.
ECI becomes the first Export Credit Agency (ECA) to partner simultaneously with China's three major state-owned financial institutions, namely, SINOSURE, the official export credit agency of China; ICBC, the world's largest public company, according to Forbes Global 2000 list; and Bank of China, the country's most globalised and diversified bank that has the longest continuous operation among Chinese banks.
ECI will collaborate with each of these organisations in the exploration and enhancement of trade and economic cooperation between the UAE and China. These alliances will strengthen ECI's position in the global market place as well as create opportunities that both countries will generate in terms of investments and trade.
The MoUs were signed in separate ceremonial occasions by Massimo Falcioni, CEO of ECI with Huang Shan, General Manager, International Department, SINOSURE; Zhang Junguo, General Manager, ICBC Dubai (DIFC) Branch; and Zhou Jianjun, General Manager of Bank of China, Dubai Branch; and witnessed by H.E. Dr. Ali Obaid Al Dhaheri, Ambassador of the UAE to the People's Republic of China and other senior officials from the said organisations.
Under the agreement with SINOSURE, both countries agree to collaborate in the areas of insurance and co-insurance, commercial information and credit opinion sharing, Shariah-compliant solutions, trade promotions, international investments, and SME programmes. While the MoUs with ICBC and Bank of China cover mutual cooperation in the areas of trade credit insurance – both conventional and Murabaha; and export financing.
Massimo Falcioni, CEO of ECI, said: "The distinguished state visit of H.H. Sheikh Mohammed Bin Zayed Al Nahyan to China reinforces the commitment of the UAE to further cement the solid foundations of the two countries' strategic partnership over the past 35 years. Collaborating with SINOSURE, ICBC and Bank of China is truly an honour for ECI. Through commonly agreed upon goals and objectives, these landmark partnership agreements signed by ECI with China's top financial institutions will not only widen trade and export related opportunities between the UAE and China but also create a unique model for which other international cooperation can be based upon."
Remarking on the joint efforts of ECI and SINOSURE, Huang Shan, General Manager, International Department, SINOSURE said: "SINOSURE offers comprehensive coverage against political, commercial credit risks to support the trade and export-related activities of SMEs and other local companies. The company has been supportive to the SME sector in the country. With our partnership with ECI, SINOSURE will be able to access ECI's comprehensive range of trade credit insurance solutions and specialist advisory services that will help SMEs and local companies in their global expansion and growth plans."
Zhang Junguo, General Manager of ICBC Dubai (DIFC) Branch said: "Through our diversified business structure, strong innovation capabilities, market competitiveness, and comprehensive financial products, ICBC has been focused on supporting the economic transformation and sustainable development of both UAE and China's economy. Our alliance with ECI will open more doors for local businesses and help in the mutual exchange of solutions and services that will be mutually beneficial for companies in UAE and China."
Zhou Jianjun, General Manager of Bank of China, Dubai Branch said: "By embracing innovative and cutting-edge plans, Bank of China endeavours to become a provider of premier, flexible financial services, and a developer of risk control measures for local and global companies. This partnership with ECI will enable us to substantially increase our support for local businesses through a shared range of commercial and investment banking services."
According to the UAE Ministry of Economy, China is the UAE's main trade partner in terms of non-oil commodities, which accounts for 9.7 percent of the non-oil bilateral trade in 2018, estimated at over USD43 billion. The report also highlighted that China was the UAE's chief source of commodities imports in 2018, with around 15 percent of its imports, estimated at over USD38 billion. The UAE provided 16 percent of Arab non-oil exports to China in 2018.
Total bilateral trade between the two countries amounted to USD60 billion. UAE and China are keen to expand economic cooperation with bilateral trade to achieve USD70 billion in 2020.
