ADFD will increase the export financing facility by 33.3% in 2021
The Abu Dhabi Fund for Development (ADFD) announced a 33.3% year-over-year increase in its export finance facility for 2021.
A meeting of the ADFD Board of Directors approved the allocation of Dhs 735 million to the Abu Dhabi Export Office (ADEX) to support transactions with foreign buyers of goods and services of UAE origin.
ADEX was established by ADFD to provide loans and credit guarantees to foreign importers of goods and services in the non-gross sector of UAE corporations, with payment made directly to the UAE national corporation. after successful delivery according to the terms of the contract. In its first full year of operation in 2020, ADEX committed Dh500m ($ 136m) from the allocation budget to overseas buyers to meet their sourcing needs from UAE exporters.
Providing foreign buyers with access to export finance offers an advantage to UAE businesses, especially in today’s economic environment where access to trade finance is more difficult and expensive in many emerging global markets. It also reduces the risk and financial exposure of UAE exporters on international transactions, allowing businesses to grow securely in growing markets.
The UAE recently announced the “Operation 300 Billion” and “Make It In The UAE” programs, with the aim of more than doubling the value of output from the domestic manufacturing and industrial sector over the next 10 years.
“UAE manufacturers can leverage ADEX’s financial support and protection to grow their international operations at a time when overseas buyers continue to face disruption in supply chain and liquidity issues. and immediately contribute to our national operation target 300 billion “, said Mohammed Saif Al Suwaidi, director. -general of ADFD.
“Thanks to ADEX and the entire UAE export support community, we are very confident that our national export economy will continue to grow and prosper in 2021 and into the future,” a- he added.