Etihad Credit Insurance (ECI), the UAE federal export credit company, has launched its Shariah-compliant export credit solutions under ‘ECI Islamic’ as it looks to boost the country’s halal export industry.
The launch of the Shariah-compliant product has made ECI one of the first sovereign export credit agencies in the Middle East to offer Shariah-compliant export credit insurance and guarantee solutions.
“Through our Shariah-compliant trade credit, finance, and investment solutions, ECI stays true to its mission of supporting the UAE’s non-oil sector and boosting the competitiveness of businesses in line with the vision of our wise leaders,” said ECI CEO Massimo Falcioni. “These solutions will provide UAE businesses operating in halal trade with a competitive advantage in the international market,” he added.
Among the export credit solutions offered under ‘ECI Islamic’ include trade credit insurance, which offers whole turnover policy, single risk short term policy, and single risk long term policy; letter of credit confirmation insurance; Islamic export finance; foreign investment insurance, and surety bonding.
“We aim to not only strengthen the efforts of halal exporters in the country, but also to facilitate the development of new and innovative products that contribute significantly to positioning the UAE as the global leader in the Islamic economy,” Falcioni said.
In addition, companies who avail of these solutions can also get loans and additional funding capacity from banks at a concessional rate, guaranteed by ECI. The federal export credit company can also help them tap alternative supplies through its global network of 360 million companies worldwide.
The products and services under ‘ECI Islamic’ have been reviewed and approved by Dar Al Sharia, an award-winning Islamic finance advisory firm; and re-insured by ECI’s strategic partner, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
According to the State of the Global Islamic Economy Report 2019/20, commissioned by the Dubai Islamic Economy Development Centre (DIEDC) and developed by DinarStandard, Muslim spend across halal food, pharmaceutical, and Islamic lifestyle sectors is slated to grow from $2.2 trillion in 2018 to $3.2 trillion in 2024.