Etihad Credit Insurance (ECI), the UAE’s federal export credit company, has signed a Memorandum of Understanding (MoU) with Germany’s Euler Hermes Aktiengesellschaft. The MoU establishes a framework for a long-term partnership focused on the joint support and risk mitigation of international export and infrastructure projects. 

Signed by Mohammed Tahlak, Director of Corporate Support at ECI, and Jan-Philipp Apking and Thomas Baum, Members of Executive Management at Euler Hermes, the MoU paves the way for discussions toward a comprehensive Reinsurance Agreement, a release said. 

The future agreement is intended to provide a permanent framework for reinsuring export credit risks arising from transactions involving suppliers from the UAE and Germany, including potential cooperation in third-country markets.

Case-by-case basis

Under the proposed framework, ECI and Euler Hermes may identify and explore export credit transactions suitable for cooperation. Participation in individual transactions will be assessed on a case-by-case basis, in accordance with each party’s product portfolio, eligibility requirements, risk assessment criteria and applicable international requirements, the release said.

The agreement comes amid the growing strategic importance of the Gulf region for export credit guarantees. In 2025, projects and contracts with a total volume of approximately €1.4 billion ($1.62 billion) were covered by Germany’s official Export Credit Guarantee Scheme across the region, representing almost twice the amount recorded in the previous year.

The MoU builds on the successful cooperation between the two institutions under the Ad-hoc Reinsurance Agreement concluded in 2024 in relation to a major infrastructure project in Iraq. The transaction demonstrated the mutual benefits of coordinated reinsurance and provided a strong foundation for future cooperation involving German and Emirati companies, it added.—TradeArabia News Service