RIYADH: Exporters from the UAE and Kazakhstan will have better access to Shariah-compliant insurance and trade credit after both countries signed an agreement to protect companies from potential commercial risks in international dealings.
The UAE export credit company Etihad Credit Insurance signed a memorandum of understanding with Kazakhstan’s export insurance firm KazakhExport to enhance trade and support sustainable economic growth between the two countries.
Under the terms of the agreement, both parties will organize workshops aimed at educating small and medium-sized enterprises on the gains of using trade protection solutions to mitigate the risks of nonpayment resulting from several commercial and geopolitical factors.
The MoU falls in line with the “We the UAE 2031” vision which aims to further strengthen bilateral economic relations between both countries, according to a statement.
The two sides are also expected to form a task force to explore more opportunities for cooperation, with a special focus on seven strategic areas including insurance, trade promotion, programs for supporting SMEs, among others.
The MoU was signed by ECI CEO Raja Al-Mazrouei and KazakhExport chairman Aslan Kaligazin at the 13th annual Aman Union General Meeting in Dubai.
“By entering into this agreement with KazakhExport, we are strengthening our dedication to enhancing the global competitiveness of businesses within the UAE and Kazakhstan,” Al-Mazrouei said,
“This vital partnership directly aligns with ECI’s mission to boost non-oil exports, simultaneously extending comprehensive protection to SMEs, thereby enriching the UAE’s economic diversification,” the CEO added.
He went on to say that as ECI amplifies the global footprint of SMEs, it also seeks to bolster the UAE’s economic aspirations.
“Ultimately, this agreement not only fortifies our commitment to enhancing economic and trade relationships with Kazakhstan but also paves the way for sustainable economic growth, reflecting our mutual objectives,” Al-Mazrouei said.
The agreement bolsters the UAE’s constant efforts to position itself as a global hub for trade and finance as well as to elevate its role as an attractive market for global firms.
In January, UAE-based port developer and regulator AD Ports Group also signed deals with Kazakhstan’s national oil company and government to develop shipping fleets and facilities on the Caspian and Black Seas to aid growing exports.