Last month, I made my third visit to the UAE as chairman of the Export-Import Bank of the United States (Exim). In Dubai and Abu Dhabi, I met business and government leaders to hear more about their plans for the future and discuss how American goods and services can help them realise their goals.
I came away from the trip impressed by the scale of, and ambition for, capital expenditure projects that will continue to modernise and diversify the UAE for a world beyond oil and gas.
Last month I viewed the country through the words of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Comander of the Armed Forces. Specifically, I was thinking of his speech at the 2015 Government Summit in Dubai, where he reflected on the changes Emiratis can look forward to as they chart their course for the future.
He spoke of the next 50 years of the UAE, of a future without oil and gas, of a country that would rejoice in its plans for a sustainable economy for the future.
Sheikh Mohammed captured the urgency and promise of the investments the UAE is making today, beyond oil and gas. These investments – in transportation infrastructure, railways, urban metro, port development, power generation and water treatment – will position the UAE for success for generations to come.
Exim is eager to consider financing in support of US exports to the UAE – exports that have the potential to further advance the country’s already strong economic growth and contribute to the continued diversification of the economy.
Exim is the official export credit agency of the United States. We offer financing to support the purchase of American goods and services abroad. The kind of financing we provide is a critical tool for capital expenditure projects. Exim can offer terms from five years to as long as 18, in the case of renewable energy projects.
For smaller businesses looking to make sales in the UAE, Exim offers export credit insurance and loan guarantees. We’ve been facilitating trade and capital investments around the world for more than 80 years.
The investments Emirati leaders in business and government have planned are key opportunities for American businesses. Building the railways, urban metro systems and water treatment facilities of the next 50 years will require an international effort, and American exporters can offer some of the best goods and services in the world to turn those visions into realities. They and their potential Emirati customers can rest assured that Exim stands ready to offer the competitive financing necessary to support the transactions that build the future of a nation.
The Dubai South project is one example of a capital project that required long-term financing to support workforce development and construction. It is just one of many – and Exim can play a role in making future projects affordable.
Exim already has a strong partnership with the UAE and its people. Last year, the UAE was the number one destination for Exim financing in the Middle East. Since 2009, it has authorised more than $8 billion (Dh29.4bn) in support of US exports to the UAE – more than four times that of the previous two American administrations.
I’m excited about the opportunity to finance American participation in realising the infrastructure projects of the UAE’s vision. In fact, we’ve financed UAE infrastructure projects before – for example, when we supported a partnership between Emirates Aluminum Company (Emal) and General Electric. In 2014, Exim authorised a 13-year direct loan to Emal so it could purchase goods and services from GE in support of a power plant expansion for an aluminium smelter. Exim made it possible for American goods and services for this larger $4.5 billion project – part of the growing UAE power sector.
Exim financing dates back to the union of the UAE in 1971. Since then, Exim has provided financing for the purchase of American goods and services towards infrastructure and transportation projects, as well as aircraft purchases.
Securing export credit agency financing will continue to play an important role in the planning and execution of major capital investments around the world.
I was truly impressed by the investments the UAE is making towards a sustainable economic future. In the face of declining oil and gas prices, Emiratis are innovating and attracting the interest of the entire world through investments in aircraft, transportation infrastructure, and clean power and water.
I look forward to continuing to strengthen our economic ties to the UAE, which will result in countless opportunities for Emiratis and a sustainable future for us all.
Source: The National (Author: Fred P Hochberg)
