Dubai, UAE – Al Ittihad Export Credit Company concluded a memorandum of understanding with the German company “Euler Hermes” (Euler Hermes), which manages the export credit system on behalf of the Federal Republic of Germany. With the aim of establishing a framework for a long-term partnership, focusing on joint support and reducing risks associated with export and infrastructure projects at the international level.
The memorandum paves the way for discussions aimed at concluding a comprehensive reinsurance agreement. Provides a permanent framework for reinsurance of export credit risks arising from transactions associated with suppliers from the UAE and Germany. It includes the possibility of joint cooperation in other markets.
The proposed framework for the MoU allows both the Export Credit Union and Euler Hermes to explore and identify optimal export credit transactions for bilateral cooperation. Evaluate participation in each transaction individually, in accordance with each party’s product portfolio, eligibility requirements, risk assessment criteria and applicable international requirements.
The signing of the memorandum comes in light of the growing strategic importance of the Gulf region in ensuring export credit. In 2025, Germany’s official export credit guarantee program succeeded in providing coverage for projects and contracts in the region. Its total value amounted to about 1.4 billion euros, nearly double the value recorded in the previous year.
The memorandum of understanding is based on the success of existing cooperation between the two parties within the framework of the reinsurance agreement concluded between them in 2024. To cover a major export credit transaction in Iraq, which embodied the mutual benefits of close cooperation in the field of officially subsidized export credit. It formed a solid foundation for moving forward with joint efforts within future transactions.
This step comes as a continuation of the Export Credit Union’s commitment to strengthening cooperation with international export credit institutions. Establishing risk-sharing mechanisms that will enhance opportunities for exporters and suppliers in the UAE. This enhances the company’s role in facilitating access to global markets and contributing to the continued growth and diversification of UAE non-oil exports.
