UAE, Israel export credit agencies sign agreement to develop economic relations

UAE, Israel export credit agencies sign agreement to develop economic relations

The export credit agencies of the United Arab Emirates (UAE) and Israel have signed a co-operation agreement to develop economic relations between the two countries, the UAE’s state news agency WAM said.

Etihad Credit Insurance and the Israel Foreign Trade Risks Insurance Corporation (ASHR’A) plan to support jointly exports, trade, and investment between the two countries, WAM said.

Since the UAE and Israel agreed to normalize relations in August, the two countries have signed a series of accords to boost economic and business ties.

The annual exchange of trade between Israel and the UAE across several industries is expected to reach US$4-billion a year, the WAM report said.

“With state guarantees from both countries, this deal will encourage exports and investments, help minimize political and commercial risks, and raise export financing for the mid- and long-terms,” Nissi Ben Eli, chief executive of ASHR’A, was quoted as saying.

Export credit agencies (ECAs) offer loan guarantees, and sometimes direct financing to overseas buyers, to facilitate the export and supply of domestic goods or contractors.

ECA-backed debt financing has become increasingly relevant in the Gulf region over the past few years as a drop in oil prices has prompted governments to seek alternative funding sources.

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Published at Mon, 14 Dec 2020 00:44:16 +0000