The UAE’s federal export credit company Etihad Credit Insurance (ECI) has signed a Memorandum of Arrangement (MoA) with New Zealand Export Credit (NZEC) to boost bilateral trade relations, local reports have said.
The deal is also expected to enhance the capabilities of SMEs in both countries to expand globally, without worrying about the payment risks due to commercial or non-commercial reasons, said the local reports.
ECI and NZEC are said to have agreed to promote the UAE and New Zealand exports and export-related investments by providing tailored trade credit insurance and financial guarantees, backed by their respective governments.
Both export credit agencies have signed this agreement in order to complement and not compete with the private sector through supporting smaller and growing firms, as well as offering the market capacity to larger firms.
The partnership will focus on improving halal trade by leveraging Shariah-compliant finance solutions as they expand their businesses in strategic sectors like steel and aluminum, ceramics, mechanical, waste management industries, among others.
To equip these businesses, both organizations will jointly hold workshops, forums, B2B meetings and events among exporting corporates, located in New Zealand and in the UAE.
The UAE is New Zealand’s largest trading partner in the Middle East and its12th largest trading partner globally, and an important hub for doing business with the wider Middle East and beyond.
According to Statistics New Zealand, the total two-way trade between New Zealand and the UAE in 2021 reached AED8.63 billion ($2.35 million).
Moreover, New Zealand is Dubai’s second top food trade partner, accounting for 13 percent of total food imports to the emirate in 2020, as per the data published by the Dubai Chamber of Commerce and Industry.