In a significant boost to the UAE’s trade sector, DP World Trade Finance, in alliance with Etihad Credit Insurance (ECI), has provided over Dh1 billion in finance support within 12 months of their partnership. This substantial financial backing has particularly benefitted local SMEs, which historically have faced challenges in accessing trade finance solutions for global trading opportunities. The collaboration between DP World and ECI has extended support across various industries, including agri-commodities, chemicals, manufacturing, and construction materials.
ECI plays a vital role by offering trade credit insurance to financial institutions, enabling them to extend trade finance to businesses involved in international trade. This insurance supports financial institutions in providing working capital solutions, a crucial factor for businesses in their trade activities.
DP World, Dubai’s leading ports and free zones operator, initiated its standalone trade finance services in 2021 after identifying gaps in the local market for such support. The company’s approach not only connects businesses with financial institutions but also directly provides trade finance facilities using its own balance sheet.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, articulated the company’s vision of transcending boundaries in global trade. “By integrating physical infrastructure, building relationships, using advanced technology, and offering innovative finance solutions, we aim to elevate the global trade ecosystem,” he stated.
Since its launch in July 2021, DP World Trade Finance has collaborated with 25 financial institutions and generated over $800 million in credit limit submissions. The platform, which boasts a registration process of less than five minutes, has attracted over 58,000 global clients seeking affordable access to trade finance.
DP World Trade Finance (DP World Financial Services Ltd.) acquired its lending license in June 2022, offering credit through short-term working capital solutions like invoice factoring, invoice discounting, reverse factoring, and trade payables financing.
The platform’s goal is to participate in risk with existing lenders to ensure the working capital needs of clients are adequately met. Operated by DP World Financial Services, it arranges and provides credit for clients based in the UAE, while DP World Services Limited caters to clients outside the UAE.
This initiative marks a significant milestone in supporting and expanding the UAE’s trade sector, particularly benefiting SMEs and enhancing the country’s position as a global trading hub.
