(DENNIS B MALLARI)
The Dubai Export Development Corporation (DEDC) is working with a French firm to launch the UAE’s first credit insurance product for Dubai’s exporters.
The scheme will offer exporting firms in the Emirate protection against non-payment, the organisation announced yesterday. The trade insurance is part of the DEDC’s plans to offer support services to the industry.
“We hope to have a private insurance company that can provide exporters with a guarantee for non-payment, with the aim that it will increase exports in Dubai,” said DEDC chief executive officer Saed Al Awadi (pictured above, left).
“The credit insurance scheme will act almost as a factoring service, and ensure prompt payment for exporters,” DEDC chairman Khalid Al Kassim (pictured above, centre) added. The new trade insurance scheme, which will also cover re-exports sourced from other countries, will provide Dubai exporters with expertise and assessment of credit and country risks, and the ability to develop new markets in different countries.
One of its main aims is to help lower incidences of bad debt by offering continued improvement in quality of customers, as well as providing added security to finance providers, Al Awadi said. “These are ideas and projects we hope will soon be available to Dubai exporters,” he said. The organisation is also moving ahead with plans to offer legal and regulatory advice on quality audits, trade policies and free trade agreements to Dubai export firms, Al Kassim said.
“The scheme will provide information on regulations in the UAE, and on the regulatory procedures in the export countries and new markets opening up to Dubai export firms,” Al Awadi told Emirates Business. The regulatory scheme – set to come online in 2008 – and is expected to help exporters make easier decisions, he said. The DEDC also aims to give smaller businesses the power of negotiation with officials in foreign countries.
Part of DEDC’s plans also includes simplifying existing export procedures, leveraging free trade agreements and introducing export financing schemes.