The Abu Dhabi Exports Office (ADEX), the export-financing branch of the Abu Dhabi Fund for Development (ADFD), recently signed a $30 million (Dhs110.19 million) line-of-credit arrangement with the Eastern and Southern African Commerce and Development Bank (TDB) to boost trade between both the UAE and the Bank's member countries.

The trade financing facility agreement, one of its type signed by ADEX with a foreign financial institution, was signed through a virtual event by Saeed Al Dhaheri, Acting Director-General of ADEX, and Admassu Tadesse, TDB Group Managing Director, and CEO.

ADEX will grant the credit line to TDB through the facility to issue loans to buyers and importers from the Bank's Member States to acquire products and services from UAE suppliers.

“Achieving mutual interest via strategic alliances is critical to ADEX's attempt to make its goal of driving sustained economic development at home and abroad a reality,” said Mohamed Saif Al Suwaidi, Director-General of ADFD and Chairman of ADEX's Export Executive Committee.

“The accord represents a perfect relationship that helps everybody.” The agreement is consistent with the UAE Government's goal of supporting and promoting trade connections that help both partner organizations and Emirati exporters, allowing them to grow their enterprises and contribute to economic diversification and sustainable development in the UAE and beyond.

It also aligns with TDB's objective to fund and promote trade, regional economic connectivity, and long-term development in its Member States.

The collaboration will provide much-needed assistance to both importers and exporters at such a time when the world economy is suffering hardships as a result of the COVID-19 pandemic.

According to Al Dhaheri, the deal is an important aspect of ADEX's primary objective of assisting national enterprises in expanding their reach and supporting the UAE's economic diversification efforts.

He described it as an excellent collaboration that allows the export-financing company to proactively generate development for the national export industry while also allowing a larger variety of importers to acquire credit on more competitive terms. “This is a tough period not just for UAE exporters, but also for their overseas purchasers, especially small importers who cannot obtain any direct financial assistance from export-financing organizations.”

“Both are battling with liquidity and cash supply concerns, late supplier payments, and restricted financing options.

“Through our collaboration with TDB, we hope to offer a solution to these issues, allowing both the exporter and importer to fund mutually advantageous transactions promptly and easily.” As a result, the deal benefits both parties,” Al Dhaheri stated.

TDB Group Managing Director and CEO Admassu Tadesse said that commerce between the UAE and Africa has almost doubled in the last five years and more than eight-fold in the last 15 years.

“The results show that firms in the UAE and our area are keener in strengthening trade relationships.”

He expressed optimism that the agreement will enable the beneficiaries to realize their full potential by expanding their prospects, and that they would engage more significantly in the joint effort of ADEX and TDB to achieve sustainable growth.

Along with the Facility, the parties agreed on a cooperation deal to establish the further groundwork for the promotion of commerce and commerce between the UAE and Africa. In that sense, TDB and ADEX shall investigate the possibility of co-financing relevant trades and establishing new lines of credit, and stimulate the sharing of information on relevant parties and potential transactions that can support the agreement's underlying objectives.