Etihad Credit Insurance (ECI) Company Profile

Background

Etihad Credit Insurance (ECI) is the United Arab Emirates' (UAE) federal export credit agency, established in 2018 to bolster the nation's economic diversification by supporting non-oil exports and re-exports. ECI's mission is to enhance the global competitiveness of UAE-based businesses by providing comprehensive credit insurance and trade finance solutions, thereby mitigating commercial and political risks associated with international trade. The agency plays a pivotal role in advancing the UAE's "We the UAE 2031" vision, aiming to achieve AED 800 billion in non-oil exports within the next decade.

Key Strategic Focus

ECI's strategic objectives include:

Supporting Non-Oil Export Growth: Facilitating the expansion of UAE-based companies into global markets by offering tailored credit insurance solutions.

Empowering Small and Medium-Sized Enterprises (SMEs): Over 60% of ECI's beneficiaries are SMEs, reflecting a commitment to nurturing this vital sector.

Diversifying Sectoral Support: Providing coverage across 17 strategic sectors, including manufacturing, information and communication technology (ICT), agriculture, infrastructure, and energy.

Expanding Global Reach: Offering credit solutions in over 100 countries, with significant exposure in markets such as Saudi Arabia, Egypt, Oman, Qatar, Bahrain, India, Singapore, the UK, the EU, and the US.

Financials and Funding

Since its inception, ECI has demonstrated robust financial performance:

Insured Turnover: Achieved AED 16.2 billion in 2024, marking a 15.7% year-on-year increase and accounting for 2.85% of the UAE's total non-oil exports.

Gross Exposure: Increased to AED 11 billion in 2024, a 14.58% rise over the previous year.

Gross Written Premium (GWP): Accumulated AED 447 million, reflecting strong portfolio growth and a high retention rate.

Debt Recovery: Collected AED 158 million from overdue payments in 2024, achieving a 77% collection success rate.

Technological Platform and Innovation

ECI leverages advanced technologies to enhance its service offerings:

Artificial Intelligence (AI) in Credit Scoring: Developed an AI-based credit scoring model to underwrite risks on SMEs, enhancing risk assessment accuracy.

Sharia-Compliant Solutions: Introduced the region's first Sharia-compliant short-term credit insurance product, catering to the needs of Islamic finance.

Global Market Explorer: Provides exporters with insights into market trends, product demand, and competitive landscapes, facilitating informed decision-making.

Leadership Team

ECI's leadership comprises experienced professionals dedicated to advancing the agency's mission:

H.E. Abdulla Bin Touq Al Marri: Minister of Economy and Chairman of the Board of Directors.

H.E. Raja Al Mazrouei: Chief Executive Officer, leading strategic initiatives and overseeing operational excellence.

Competitor Profile

Market Insights and Dynamics

The global export credit insurance market is characterized by:

Market Size and Growth: A steadily growing sector driven by increasing international trade and the need for risk mitigation solutions.

Industry Trends: Emphasis on digital transformation, AI integration, and the development of Sharia-compliant products to cater to diverse client needs.

Competitor Analysis

Key competitors in the export credit insurance industry include:

Allianz Trade: A subsidiary of Allianz SE, offering trade credit insurance, debt collection, surety bonds, and political risk protection. With a presence in over 50 countries and a global market share of 34%, Allianz Trade monitors the financial health of over 80 million companies.

African Trade Insurance Agency (ATI): Provides political risk and credit insurance across Africa, facilitating trade and investments by mitigating risks associated with cross-border transactions.

Strategic Collaborations and Partnerships

ECI has established significant partnerships to enhance its service offerings and global reach:

African Trade Insurance Agency (ATI): Signed a reciprocal reinsurance agreement to boost trade and investments between the UAE and Africa, providing businesses with comprehensive risk mitigation solutions.

Global Export Credit Agencies: Entered into agreements with entities such as US EXIM, Korea Eximbank, Sinosure, and BPI France, solidifying ECI's position as a trusted partner in international trade.

Operational Insights

ECI's strategic initiatives and partnerships provide distinct competitive advantages:

Comprehensive Coverage: Offering up to AED 500 million per risk, backed by a robust reinsurance treaty with nine 'A'-rated reinsurers.

Focus on SMEs: Tailored solutions for SMEs, which constitute over 60% of ECI's beneficiaries, fostering economic diversification and growth.

Technological Innovation: Utilization of AI and digital tools to enhance risk assessment, underwriting processes, and market intelligence.

Strategic Opportunities and Future Directions

ECI is poised to capitalize on several strategic opportunities:

Expansion into Emerging Markets: Leveraging partnerships to facilitate UAE exports to high-growth regions, particularly in Africa and Asia.

Enhancing Digital Capabilities: Investing in AI and digital platforms to streamline operations and offer innovative products.

Sustainability Initiatives: Supporting projects aligned with the UAE's sustainability commitments, such as the Africa Green Investment Initiative, aiming to deploy $4.5 billion in African renewable energy capacity by 2030.

Contact Information

Website: etihad-credit-insurance.gov.ae

LinkedIn: linkedin.com/company/etihad-credit-insurance

Twitter: twitter.com/ECI_UAE

Instagram: instagram.com/eci_uae/

Facebook: facebook.com/ECI.UAE/

Etihad Credit Insurance continues to play a crucial role in supporting the UAE's economic diversification and enhancing the global competitiveness of its exporters through innovative solutions and strategic partnerships.