US banks urged to expand credit to UAE firms

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai's Supreme Fiscal Committee, has called upon the US financial institutions to provide more credit facilities to UAE companies.

Addressing the US-UAE Export Finance Matchmaking event organised by Dubai Economic Council here yesterday, Sheikh Ahmed said: "We believe that the resilient situation of US financial institutions, particularly the Export-Import Bank, besides other prominent banks in the US can provide the credit facilities that sustain our partnership. I hope that we could, at the end of the day, conclude a framework of initiatives that realise the interests of all of us."

Sheikh Ahmed is also President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chairman and Chief Executive of Emirates group and airline.

The US Exim Bank, which has $3.3 billion (Dh12.12bn) outstanding in the UAE, is working on ways to boost its presence in the UAE by opening itself up to those who have not taken advantage of the facilities offered by it, according to the bank's top official.

Talking to Emirates Business on the sidelines of the event, Bijan Kian, senior US Exim Bank board member said: "We have the option to extend short-term, medium-term and long-term coverage through insurance policies to financial institutions in order to encourage them to lend."

Stating that the UAE and US Exim Bank have long-standing relationship, Kian said his institution is willing to offer conditional guarantees to encourage lending.

The meeting, which was organised by Dubai Economic Council (DEC), was also attended by Juma Al Majid Chairman of DEC.

In his opening remarks, Sheikh Ahmed said: "Economic liberty and openness to the global market are the secret behind Dubai's success." He said the Government of Dubai always seeks to enhance the economic relations in various areas with the rest of the world.

"Dubai's economic philosophy is based on economic liberty whether internally or externally. This was and still the main secret beyond the landmark growth of Dubai in the region."

Al Majid said that there are 1,118 American companies operating in Dubai, most of which have engaged in partnerships with national businesses. "This offers an opportunity to reshape the commercial relations between Dubai and the American business community."

Representatives of a number of US and global banks such as JP Morgan Stanley, Citibank, Standard Chartered, Deutsche Bank, Barclays Bank and Credit Agricole were also present.

Stressing on the importance of the US-UAE meeting, the US Ambassador to the UAE, Richard Olson, said: "Today's meeting is an important step towards enhancing US Government support for trade finance, a step that has long been advocated by our host – UAE."

In 2009, the UAE was the largest Middle East export market for the US with a value of $12bn. "This is even more remarkable when you consider that our total exports in 2000 were just $2.2bn. So, we've seen nearly 600 per cent increase in a decade," Olson added.

In January, US President Barack Obama announced the National Export Initiative, a programme to double the US exports in the coming five years. This initiative aims to grow the US economy and create two million jobs through trade, and to position US products and services in key markets around the world to compete as the global economy recovers. There are three key elements of the initiative: Expanding the trade advocacy in all its forms, by educating the US companies about opportunities overseas; connecting them with new customers and advocating for their interests; continuing the rigorous enforcement of international trade laws to help remove barriers that prevent the US companies from getting free and fair access to foreign markets, and improving access to credit with a focus on small and medium-sized businesses that want to export.

Trading began years ago on a transactional basis but over the years, the US and Dubai trading companies have developed deeper relationships and have become partners. Dubai's trading firms have brought many US companies to this region for the first time.

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