ADFD to increase export financing facility by 33.3% in 2021

The Abu Dhabi Fund for Development (ADFD) has announced a 33.3 per cent year-on-year increase in its export financing facility for 2021.

A meeting of the ADFD Board of Directors approved the allocation of Dhs735m to Abu Dhabi Exports Office (ADEX) to support transactions with overseas buyers of goods and services of UAE origin.

ADEX was established by the 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 in 2020, ADEX committed Dhs500m ($136m) against the allocation budget to overseas buyers to meet their procurement needs from UAE exporters.

Providing overseas buyers with access to export financing provides an advantage to UAE companies, particularly in the current economic environment when 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 growth markets.

Read: Trade between UAE, GCC worth Dhs229bn in 2019

The UAE recently announced ‘Operation 300bn’ and ‘Make It In The UAE’ programmes, with the aim of more than doubling the value of the output of the national manufacturing and industrial sector in the next 10 years.

“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,” said Mohammed Saif Al Suwaidi, director-general of ADFD.

“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 added.