The UAE's Etihad Credit Insurance (ECI) has partnered with First Abu Dhabi Bank (FAB), to cooperate in developing enhanced letter of credit (L/C) and other trade finance offerings.

The partnership aims to assist UAE-based exporters and businesses manage their trade finance needs and support their international expansion ambitions.

L/C confirmations

Exporters and businesses will benefit from products and solutions that will allow them to mitigate commercial and political risks associated with international trade activities while supporting their financing needs.

The partnership will work together on L/C confirmations. ECI and FAB will also cooperate in providing conventional and Islamic (Murabahah) trade credit insurance, credit risk, and supply risk solutions as well as export and small- and medium-sized enterprise financing and factoring.

Business support

ECI said in a statement that the collaboration is a "solid step towards supporting local businesses and their capability to trade globally." The partnership also aims to encourage businesses to strengthen their position regionally and internationally, in line with the country's diversification strategy.

According to FAB's group deputy chief executive officer, Andre Sayegh, the agreement enables the partnership to provide businesses with easier access to capital when they look to trade.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.