Nine Companies Obtain Credit Insurance Under Abu Dhabi Financial Ecosystem Program
Abu Dhabi’s Ministry of Economic Development has completed the first phase of the Emirate’s Industrial Facility Financial Ecosystem Program, under which nine companies have purchased credit insurance to boost their business.
Implemented by the Industrial Development Bureau, a subsidiary of Added, the program aims to improve the credit environment for the industrial and commercial sectors by motivating banks to compete and provide premier financing products and services. plan to the economic sectors of Abu Dhabi.
The total insured turnover value of the nine industrial facilities stood at 2.1 billion dirhams ($ 571 million) since March 2020, Added said in a statement on Sunday. The insured turnover for the metallurgical industry was Dh1.588md, Dh367m for the plastics and glass industry, Dh100m for the construction sector, Dh70m for the chemical sector and Dh19m for the electrical and electronics industry .
The plan aims to increase competitiveness within the financial sector, improve the financial ecosystem, increase the economic impact and performance of the industrial sector through exports, in addition to improving access to finance, Mohamed said. Al Shorafa, President of Added.
The Industrial Development Office is working with the Abu Dhabi Digital Authority to provide a digital platform through which the financial ecosystem program is implemented through the âTammâ integrated service system, he said. added.
“The integration will facilitate the process of enabling business owners to obtain the appropriate financing for their entities in a simple and accessible manner, compatible with the nature of their economic activity,” the statement said.
Abu Dhabi has taken various measures to promote self-sufficiency and encourage local manufacturing.
Added presented the Basic Industries Project to make the emirate “self-sufficient in the production of basic and consumer goods” in July last year. The objective is to increase the contribution of the private sector to meeting local demand and to encourage exports. The project, which is being undertaken by the Industrial Development Bureau, will seek to strengthen investments in four major sectors of food production, medical supplies, power generation and important materials such as iron and cement.
In its second phase, which starts early next year, the financial ecosystem program aims to secure export credit insurance for 28 industrial facilities in Abu Dhabi, with a total turnover of 7, Dh 5 billion, comprising metal, electricity, chemicals, plastics, glass, construction, food, timber, paper, machinery and equipment industries, according to Added.
Abu Dhabi has taken steps to support its economy, including offering rental discounts and reducing business start-up costs by more than 90% to attract investors and improve the ease of doing business in the emirate. .
In July this year, Added, in partnership with other government organizations, reduced business start-up costs from 94% to MAD 1,000 to attract more investors to the emirate and strengthen its competitiveness.
Update: November 28, 2021, 4:45 p.m.