The Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development (ADFD), has signed an AED 36.7 million (US$10 million) line-of-credit agreement with the National Bank of Iraq, part of the Capital Bank Group.
The goal of the agreement is to increase economic cooperation between the UAE and Iraq, which will improve bilateral ties and encourage Emirati businesses to export their goods to Iraq.
The agreement gives ADEX the ability to open a line of credit with the National Bank of Iraq with the intent of re-lending importers in Iraq to acquire goods and services from Emirati exporters. This also helps in UAE’s strategy on economic diversity and gives a push to ADEX’s efforts to contribute to the economies of both nations.
The financing agreement was signed virtually by Khalil Al Mansouri, Acting Director-General of ADEX, and Ayman Abu Dhaim, CEO of the National Bank of Iraq.
Senior officials from both sides, including Mohamed Saif Al Suwaidi, Director-General of ADFD and Chairman of ADEX’s Export Executive Committee, were present for the occasion.
Abu Dhaim said that the agreement represents an important step towards bolstering economic cooperation between the UAE and Iraq.
He added “Through the facilitation of trade, the two countries will benefit economically, which is what the two nations aspire for. The agreement will allow Iraqi companies to benefit from the competitive financing provided by ADEX, while also supporting Emirati exporters to trade their products in a safe and secure manner.”
Al Suwaidi said “The agreement is part of ADEX’s effort to strengthen strategic partnerships with regional and international banks, so it can create opportunities to lend importers to buy our products and services more easily. This will increase the competitiveness of national exports. More importantly, the agreement will enable us to fulfil our common interest of economic development of the two countries.”
By boosting the export sector’s competitiveness, shielding exporters from financial risks brought on by delays or nonpayment, and enabling the import of Emirati goods and services through competitive financing, the Abu Dhabi Export Office supports the UAE’s objective to diversify the economy.