UAE Export Credit Firm Announces Trade Finance Support To SMEs

Recently, a worth of AED 420 million ($114 million) trade credit backing has been initiated by the Etihad Credit Insurance (ECI), a Federal export credit company of UAE to small and medium enterprises (SMEs) from January to November of 2020 to strengthen their liquidity amid opposite financial circumstances.

The aforesaid trade credit support translates to AED1 billion ($272.2 million) non-oil trade insured turnover as small-size businesses have witnessed difficulties in competing in domestic as well as global markets amid the COVID-19 pandemic.

As per the ECI, the initiated trade credit support is expected to help SMEs in minimizing their cost of bank funding as well as make them capable of discounting their invoices from their respective banks at the favored rates. However, the invoices are secured by ECI.

The main purpose behind granting this big support to SMEs is their vulnerability in the global market. According to the report released by the US Bureau of Labour Statistics, only 50% of Startups are capable enough to succeed in the fifth year of operation following up to a 33% dropdown in the 10th year.

Regardless of the reduced chance of operations, the significance of SMEs in the viable worldwide economy cannot be ignored. The latest data report conducted by the World Bank indicated 90 percent of trade and over 50 percent of employment globally were represented by the SMEs.

The remarkable contribution of the SMEs towards UAE’s GDP has also been shown by the Federal Competitiveness and Statistics Authority, UAE. As per the report, it is evaluated at 53 percent in 2019, higher from 49 percent in 2018.

Despite these, SMEs are also providing aid to 95 percent of the companies in the nation along with 86 percent employment of the absolute labor force in the non-oil private sector.

These above-mentioned data are capable enough to demonstrate the dominance of SMEs in the overseas market but due to their fragile survival, they are at high-risks by various financial institutions, driving organizations to suffer while gaining access to credit.

To solve this problem, the SME Protect has been announced by the ECI, a business credit solution for SMEs to boost their development plans worldwide and help them ensure smooth arrival in the high-growth market.

As per the CEO of ECI, Massimo Falcioni, “SME Protect is the actualisation of our mandate to accelerate the SME growth and sustain the non-oil foreign trade growth development in the UAE. We aim to further bolster the capabilities of our nation’s SMEs through our bespoke financial products that will help them achieve their expansion goals and propel them towards greater heights.”

In an interview with Arabian Business in October, he further added that only a quality product or service is not enough as long as the companies have legitimate insurance and financial backing to succeed in the global market.

The ECI is assuring the banks which implies that they can provide financial assistance to the exporters and will get payment in the event of opposite circumstances.

In the initial nine months of 2020, over 1,600 revolving credit guarantees were issued to the exporters by the ECI along with 40 percent of the companies upheld being SMEs.

Other news

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...


Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.