Israel and UAE export credit agencies sign cooperation agreement

This recent signing is another step in strong Israel-UAE relations that comes on the heels of the normalization agreement in August between the two countries.

'Peace', written in Hebrew, Arabic and English, is painted on the first plane to make an official flight between Israel and the UAE, August 30, 2020 (photo credit: EL AL)
'Peace', written in Hebrew, Arabic and English, is painted on the first plane to make an official flight between Israel and the UAE, August 30, 2020
(photo credit: EL AL)
The export credit agencies of Israel and the United Arab Emirates (UAE) signed a cooperation agreement Monday aimed at boosting economic relations and trade between the two countries, according to the UAE's state news agency WAM. 
According to the report, the Israel Foreign Trade Risks Insurance Corporation (ASHR'A) signed the agreement with its UAE counterpart Etihad Credit Insurance, which will work on jointly supporting increased exports, trade, and investment. 
This recent signing is another step in strong Israel-UAE relations that comes on the heels of the normalization agreement in August between the two countries. Economic forecasts, according to the report, predict that trade between Israel and the UAE will reach $4 billion per year in a variety of different industries. 
Nissim Ben Eli, chief executive of ASHR'A, praised the signing of the agreement, suggesting that it will encourage more exports by lowering political and commercial risks for companies. 
The role of export credit agencies is to offer loan guarantees, along with directing financing to buyers overseas in order to support the export and supply of domestic goods. These agencies are common throughout the Gulf region, due in part to the global drop in oil prices.