Financial institutions from the UAE and Jordan have announced a partnership aimed at increasing trade between the two nations.
Etihad Credit Insurance (ECI), the UAE Federal Credit Insurance Company has signed a Memorandum of Understanding (MoU) with the Jordan Loan Guarantee Corporation (JLGC) to explore, develop and strengthen the trade relationship between the Kingdom of Jordan and the UAE on the basis of equality, mutual benefit, respect and trust.
This partnership will enable the two nations to enhance trade and business activities through the exchange of information and exploring business practices and conducting training programmes in areas of shared interest.
It will also allow UAE-based businesses to expand internationally by providing them with ECI’s comprehensive portfolio of financial solutions along with its expertise in commercial underwriting, risk management, country assessment, claims and recovery, and JLGC’s tailored surety schemes, namely loan guarantee and export and domestic credit guarantee.
This risk mitigation solutions will enable the financing of SMEs, which will ensure their sustainable growth, they said in a joint statement.
The MoU was signed by Massimo Falcioni, CEO of ECI and Dr. Mohammed Al Ja'fari, director general of JLGC in the presence of senior representatives from both organisations. This agreement between ECI and JLGC reflects UAE and Jordan’s strong ties and strengthening of bilateral relationships.
Under this MoU, both institutions will collaborate on defined workstreams that include co-operation in insurance, reinsurance, and collections; sharing of commercial information and credit opinion on businesses located in the UAE and Kingdom of Jordan; conducting technical workshops; development of Halal industry & Shariah-compliant insurance and financial solutions; participation in trade shows; and enhancing investments and SME programmes.
Massimo Falcioni, CEO, ECI said, “Our partnership with JLGC marks the continuation of the cordial relationship shared between the UAE and the Kingdom of Jordan. ECI has always looked at the SME segment as a dynamic sector that plays a crucial role in the sustainable development of the UAE. ECI’s mandate, right from the beginning, has been to empower the UAE-based businesses by strengthening their business capabilities through risk mitigation. We are certain that our collaboration with JLGC will help to increase UAE businesses and the SME’s access to funding in the region.”
Commenting on this strategic alliance, Dr. Mohammed Al Ja'fari, director general of JLGC, stated, “The collaboration between ECI and JLGC marks a new momentous phase in the UAE-Jordan relations. JLGC’s objective has been to collaborate with financial institutions to showcase and expand its guarantee system to all economically sustainable sectors thereby contributing to the economic growth of the country and the region at large. By offering guarantees to local businesses and SMEs, we are enabling them to receive adequate funding for the development of their businesses.”
According to the statistics provided by the UAE Ministry of Economy, the total non-oil export trade volume between the UAE and the Kingdom of Jordan has increased to USD741.0 million in 2018, from USD610.1 million in 2017.