UAE and Egypt sign reinsurance agreement to boost trade and economic cooperation – News
The agreement between the two state-owned companies will strengthen the strong trade and economic cooperation, in addition to boosting export relations
Cars cross Sheikh Zayed Road in Dubai. The wide range of credit insurance between these two entities will help anticipate and mitigate the risks they may face for various political, commercial and non-commercial reasons. — AFP archive photo
Etihad Credit Insurance (ECI), the Federal Export Credit Agency of the United Arab Emirates (ECA) and its Egyptian counterpart Export Credit Guarantee of Egypt (EGE) have signed a reciprocal reinsurance agreement to support Emirati and Egyptian projects in their respective countries as well as their collaborative initiatives around the world.
The agreement between the two state-owned companies will strengthen the strong trade and economic cooperation, in addition to boosting export relations.
The wide range of credit insurance between these two entities will help anticipate and mitigate the risks they may face for various political, commercial and non-commercial reasons. This follows the ECI and EGE alliance formed in late 2019, which spawned a huge increase in their non-oil trade despite the difficult economic cycle triggered by the fallout from the pandemic.
Commenting on the strategic collaboration between ECI and EGE, Massimo Falcioni, CEO of ECI, said that the UAE has had a strong and historic bilateral relationship with Egypt since its inception, and that non-oil trade relations between these regional powers continue to improve, straddling a multitude of strategic collaborations.
“By deepening our existing partnership, this reinsurance agreement will result in unprecedented business opportunities for local businesses to enhance their regional and global competitiveness,” he said.
Mohamed Azzam, Managing Director and Managing Director of EGE, said the UAE has always been our main trading partner in the region, with significant mutual business cooperation between the citizens of the two nations for a long time.
“We believe this reciprocal reinsurance partnership with Etihad Credit Insurance will usher in a new era of economic prosperity, making a huge difference in our business dealings through a wide range of credit insurance solutions offered by both ACEs,” a- he declared.
Data from the UAE Ministry of Economy shows that non-oil trade between the UAE and Egypt in 2020 stood at Dh25.8 billion, a growth of 14.34% from to MAD 22.1 billion in 2019, demonstrating a strong and lasting strategic association between the countries.
With the historic relations shared between the UAE and Egypt, the two countries have benefited from mutual agreements that have helped strengthen regional security and enhance sustainable development in Arab countries.
The UAE is Egypt’s second largest trading partner in the Gulf region and the ninth largest in the world, and its non-oil trade doubled between 2010 and 2019.
Emirati foreign direct investment in Egypt amounted to nearly $15 billion, while Egyptian investment in the UAE totaled over $1 billion.