Etihad Credit Insurance (ECI), the UAE Federal export credit company, and the Multilateral Investment Guarantee Agency (MIGA), an institution of the World Bank Group, have expanded their cooperation and coordination to drive foreign direct investments (FDI), along with co-insurance and reinsurance activities.
Leveraging distinct records and long-standing experiences of both parties in the fields of investment guarantees and commercial credit, the agreement took place on the sidelines of Berne Union Annual General, which commenced 15 October in Hamburg, Germany.
The partnership establishes a framework that promotes joint efforts to boost FDIs through co-insurance and reinsurance. This agreement has the potential to improve quality of solutions presented to partners and clients of both parties. The prospect of this bilateral cooperation includes co-insurance and reinsurance solutions for projects, investment agreements, equity insurance, loans, shareholders’ and non-shareholders’ assurances and various other forms of investment.
Developing cooperation
Raja Al Mazrouei, CEO of Etihad Credit Insurance reiterated the company’s commitment to strengthen its strategic ties, develop cooperation and exchange experiences with key international institutions and agencies in the fields of insurance, credit and guarantees.
This comes in line with the company’s belief in the significance of efforts in boosting the resilience and sustainability of the national economy and consolidating the UAE’s reputation in the export, investment and foreign trade sectors, in line with the national goals of vision ‘We the UAE 2031.’
Furthermore, Al Mazrouei emphasised that the ECI’s partnership with MIGA signifies both parties’ common interest in fostering bilateral cooperation to support FDIs and the expansion of insurance and reinsurance activities. It fosters new opportunities for investment projects and activities and helps in the promotion of trade flows, investment and export and re-export activities in both the regional and global markets.
Al Mazrouei said: “This collaboration agreement with MIGA marks a significant stride in the company’s growth trajectory, providing new opportunities for initiating joint investment projects based on the expertise and potential of both parties.
“With this mutual cooperation, we aim to provide a broader spectrum of clients with cutting-edge insurance and investment solutions, enabling them to move ahead confidently with the development and expansion of their projects and activities and to fortify their market position. Furthermore, the agreement stands out considering the UAE’s strong reputation as an ideal hub for global investment, with the country being ranked second globally for FDI inflows in 2023.”
Expanding partnerships and accelerating the global investment landscape
The UAE has a unique presence in the global investment landscape, with a total of the UAE’s investments aboard being estimated at $2.5trillion as of early 2024 and the country’s FDI balance at the end of 2023 rising to nearly $225billion, a 15.8 per cent increase over 2022. The company insured AED 14billion worth of trade and non-oil investments in total in 2023, covering 3.1 per cent of the nation’s non-oil exports.
Hiroshi Matano, executive vice president of MIGA stated: “The agreement with ECI showcases our commitment to expand partnerships to offer a wide range of services to attract foreign direct investment in emerging markets and developing countries. We hope to co-create innovative financial solutions to address private sector needs in our member countries.”
As a member of the World Bank Group, MIGA guarantees investment against non-commercial risks for nationals of its member states, who support and invest in developing countries and emerging economies. It houses the World Bank Group Guarantees platform.
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