The sum will contribute to advancing Operation 300bn by doubling the output value of national manufacturing More than AED700 million was allocated for Abu Dhabi Exports Office (ADEX) by the Abu Dhabi Fund for Development’s (ADFD) board of directors on Sunday.
The AED735 million ($200 million) will accommodate export financing and thus will help spur the growth of exports of UAE national companies, according to a joint statement by ADFD and ADEX. Access to export financing will also contribute to advancing Operation 300bn and Make It in the UAE programmes to more than double the value of the output of the national manufacturing and industrial sector in the next 10 years.
“The newly announced Make It in the UAE initiative reinforces the strategic importance of our manufacturing and industrial sector to our future sustainable economic development strategy. The growth and diversification of our manufacturing capabilities will bring with it the opportunity to continue to expand the UAE export economy,” said His Excellency Mohammed Saif Al Suwaidi, director general of ADFD and chairman of the executive committee of ADEX.
“UAE manufacturers can leverage the financial support and protection of ADEX to grow their international operations at a time when overseas buyers continue to face supply chain disruption and liquidity challenges and immediately contribute to our national Operation 300bn goal,” he continued.
the UAE being among the few countries leading the way in the global vaccine rollout and showing clear signs of economic growth, Saeed Al Dhaheri, acting director General of ADEX, believes that exporters are strongly positioned for success now and in the years ahead and are well supported by the nation’s highly diverse and active export community support network.
“Our nation’s exporters are now better equipped to understand how to leverage this new AED735 million in export financing to expand international operations. We encourage our business leaders to partner with ADEX to help increase their attractiveness as a global trade partner, add significant value to their overseas buyers and more effectively capture market share in key international markets,” said Al Dhaheri.
“Through ADEX and the full UAE export support community, we are very confident that our national export economy will continue to grow and prosper in 2021 and long into the future,” he continued.
The 2021 budget allocation increased by 33.3 percent from the 2020 export budget and will be used to directly support transactions with overseas buyers of goods and services originating from the UAE while contributing to the expansion of the national export economy.
ADEX was established by ADFD to provide loans and credit guarantees to foreign importers of non-crude sector goods and services from UAE companies, with payment made directly to the UAE national company upon successful delivery on contract terms. In its first full year of operation last year, ADEX committed AED500 million against the allocation budget to overseas buyers to meet their procurement needs from UAE exporters.
Providing qualified overseas buyers with access to competitive export financing gives UAE companies a strategic advantage, especially in the current economic environment where access to commercial financing is more challenging and expensive in many emerging global markets.
It also reduces the risk and financial exposure of UAE exporters on international transactions, enabling companies to safely expand into strategic growth markets.
ADEX has worked together with a wide range of strategic partners across the UAE to make business leaders aware of how they can access and leverage export financing as a catalyst to accelerate economic recovery in the wake of the coronavirus related supply chain disruptions last year.