ADDED and ADEX sign cooperation
The Abu Dhabi Department of Economic Development’s (ADDED) Industrial Development Bureau (IDB) has signed a cooperation agreement with the Abu Dhabi Exports Office (ADEX), a financing entity founded by the Abu Dhabi Fund for Development (ADFD), as part of both parties’ efforts to enhance the competitiveness of local companies in Abu Dhabi in international markets and to increase their contribution to the emirate’s gross domestic product (GDP).
Through the newly signed agreement, ADEX and IDB aim to support national companies and industrial establishments operating in Abu Dhabi and foreign importers to access strategic financing solutions that can help drive successful export-import transactions of Emirati products and services by leveraging ADEX loans and guarantees.
The agreement was signed at the Abu Dhabi Economic Media Club by H.E. Mohammed Munif Al Mansouri, Executive Director of IDB, and Saeed Al Dhaheri, Acting Director General of ADEX.
H.E. Rashed Abdul Karim Al Balooshi, Undersecretary of ADDED said: “The growth of the export sector represents a key pillar of ADDED’s strategy to attain sustainable economic development in the post-COVID-19 era.”
Al Balooshi further emphasized Abu Dhabi Government’s efforts to drive economic diversification and to develop strategies aimed at helping local companies and industrial establishments across all sectors to enhance their contribution to economic development in the post-pandemic era by increasing the volume of foreign trade between the emirate and its commercial partners around the world. He commended ADEX for its key role in helping to attain these goals and reach new markets through its financing services that support the growth of the export sector.
During the signing ceremony, H.E. Mohammed Saif Al Suwaidi, Director General of ADFD and Chairman of the Executive Committee of ADEX, reiterated the crucial role of the financial services and provided through ADEX. He said: “Abu Dhabi has invested in all available resources to establish a world-class support ecosystem that enables local companies and industrial establishments to enhance their commercial presence globally. The emirate is committed to enhancing its strategic partnerships with its commercial partners and maintaining the trust with them including the major importers of products and services in the UAE. We believe that ADEX’s innovative financing services will help both the importer and the exporter to expand their business in a sustainable manner.”
Under the terms of agreement, ADDED and ADEX will work together to organize a series of workshops for industrial establishments to help raise awareness on the potential strategic value, advantages and benefits provided by ADEX to them as well as their overseas partners. The workshops will also provide these companies the chance to participate in international trade exhibitions and conferences to promote and boost their connections with trade delegations from global markets.
Saeed Al Dhaheri commented: “We believe that our partnership with ADDED is a step towards long-term sustainable economic development. It is our shared responsibility and commitment to help drive growth in the national export sector by providing solutions which could increase the competitive advantages of local companies, enhance their businesses, and expand the scope of their activities geographically to enter new international markets.”
H.E. Mohammed Munif Al Mansouri reiterated ADDED’s commitment to continuously strengthening its strategic partnership with ADFD to help further develop its work in enhancing the financing environment, which the Department has been doing through its support for industrial facilities operating in Abu Dhabi, in order to boost exports as well as promote and market their products in various countries.
ADFD established ADEX in 2019 to support the trade sector and increase the export volume of Emirati companies and industrial establishments, support their growth and enhance their competitiveness to achieve sustainable economic growth and diversify the economy’s income resources. It provides financing solutions to foreign importing companies from the public and private sectors seeking to import UAE-made products and services.
In 2020, ADEX allocated AED550 million (USD150 million) to finance export transactions conducted by Emirati companies and industrial establishments across all non-oil sectors after importers have fulfilled conditions of creditworthiness. It also provides direct financing with guarantees in the form of loans to foreign buyers and importers of UAE products and services, enabling direct payment to the Emirati exporter, bearing the risk of delay or non-payment.