Agreement inked to enhance trade between Oman and UAE
Sunday 22/December/2019 17:02 PM
By: Times News Service
Dubai: Export Credit Guarantee Agency of Oman (Credit Oman) has signed a Memorandum of Understanding (MoU) with the UAE Federal Export Credit Company Etihad Credit Insurance (ECI), to enhance the trade and economic cooperation between the UAE and the Sultanate of Oman, during the 10th Aman Union General Assembly, held in Muscat.
The MoU was signed by Massimo Falcioni, CEO at ECI and Sheikh Khalil bin Ahmed Al-Harthy, recently appointed CEO at Credit Oman, in the presence of senior officials from both the institutions.
This partnership will provide incentives to UAE businesses that are looking to expand globally by providing them mutual opportunities for insurance, reinsurance, co-insurance services for export of goods, investments and services from ECI and Credit Oman. Through this alliance, both institutions will identify specific solutions in the export and investment fields that will help specifically small and medium-sized businesses access high growth markets with ease.
Under this MoU, ECI and Credit Oman will form a collaborative task force to explore work streams that include: insurance, reinsurance, collections, commercial information and credit opinion sharing on companies located in the UAE and Sultanate of Oman, halal industry and Sharia-compliant insurance and finance solutions, trade promotions, investments and SME programmes.
Massimo Falcioni, CEO at ECI, said: “For ECI, the recently signed partnership with Credit Oman marks a strategic step in identifying new business opportunities and developing new partnerships to expand economic ties between the UAE and the Sultanate of Oman. ECI has steadily endeavoured to play an important part in widening investment opportunities for local businesses. We believe that our alliance with Credit Oman will play a crucial role in advancing the non-diversification strategy of the UAE as this collaboration will help in boosting the efforts of exporting community in diverse sectors such as steel and aluminium, fishing, renewable energy, mechanical and waste management industries.”
Discussing this highly strategic partnership, Sheikh Khalil bin Ahmed Al-Harthy, CEO at Credit Oman, said: “The UAE is one of the most important investors in the Sultanate of Oman. The newly-signed alliance between ECI and Credit Oman will certainly be a major milestone in the UAE - Oman trade and economic relations. Since commencing its activities in 1991, Credit Oman has been focused on exploring solutions that will strongly support local businesses in their expansion plans thereby contributing to the growth of the country and the region as a whole. By offering expert guidance and solutions to local businesses thereby enabling them to expand securely will also have a positive impact on the bilateral trade relations shared between the UAE and the Sultanate of Oman.”
According to the Ministry of Economy, the volume of non-oil trade between the two countries in 2017 registered about AED36 billion, a growth rate of 12.4 per cent over the year 2016 adding that the non-oil trade during the first nine months of 2018 amounted to AED32.5 billion.
Aman Union is a professional forum of national Export Credit Agencies (ECAs) founded in 2009, assembling Commercial & Non-commercial Risks Insurers & Reinsurers in Member Countries of the Organisation of the Islamic Conference (OIC) and the Arab Investment & Export Credit Guarantee Corporation “Dhaman”.
Aman Union has reached 43 members of whom 16 are founding, 18 full members and 15 observer members. Its mandate is to strengthen the relationships between its members through effective cooperation and exchange of technical expertise in seeking to promote commercial and non-commercial risk insurance. Aman Union members insured UAD 38 billion worth transactions in trade and investments in 2018, collected $187 million, protecting 7376 corporates.
ECI was admitted as an associate member in Aman Union by voting procedure of all its members in 2018.