Financing international trade has traditionally fallen under the purview of banks and other non-banking financial institutions (NBFI’s) across all industries. Recently, there has been an outstanding surge in the global visibility on trade finance, especially in the GCC region, emphasizing its role in supporting both international and domestic trade transactions.

There is a growing acknowledgment of the need to broaden the trade finance ecosystem to include both global and regional supply chains.

Over the past 5 years, the financing within the trade landscape has witnessed an outstanding growth in UAE, projected to reach 2 Tn AED by 2030. And with the emergence of KSA as a significant regional (even global!) player, the trade finance market is now more than ever influenced by the dynamics of non-oil trade transactions, reinforced by the kingdom diversification strategy.

Banks typically offer conventional financial documentary trade instruments such as letters of credit, letters of guarantee, structured letters of credit, and bills of exchange to assist customers in trading while managing associated risks and providing working capital.

With the expanding insurance market in the GCC, Trade credit insurance (TCI) is gaining prominence as a valuable supportive instrument for banks and FI’s to avail of as compared to traditional financial tools.

By protecting against the risk of non-payment, trade credit insurance stimulates trade finance making financial institutions more inclined to offer financing solutions for importers and exporters, thereby promoting international trade.

As an insurance partner specializing in credit risk mitigation and capital relief optimization, Allianz Trade in Middle East provides factoring and capital relief solutions to safeguard against the risk of non-payment of transactions.

Unconventional Trade credit insurance (TCI) solution will support Banks clients to:

• Reducing the risk associated with Global trade: TCI helps financial institutions mitigate the risk of unpaid invoices or delayed payment by the insured parties.
• Generating Additional Lending with appetite:  With the protection offered by trade credit insurance, financial institutions may feel more confident in extending credit to businesses, including those operating in volatile or international markets. 
• Improving Customer Relationship Management: TCI can contribute to improving relationships between financial institutions and their clients and aid in diversifying their portfolio.
• Providing a Competitive Advantage: Financial institutions that incorporate trade credit insurance into their range of services gain a competitive edge, providing enterprises with an additional layer of financial protection and risk management support.

Allianz Trade in Middle East Sponsor of ITFA panel at the GTR MENA event

As Dubai is hosting the renowned and highly attended  GTR MENA conference, a prominent event bringing together key stakeholders in global trade and finance, the role of Trade Credit Insurance assumes heightened significance.

We, Allianz Trade in Middle East, the leading provider of Trade Credit Insurance in the region, are proud sponsors of GTR MENA 2024, reaffirming our commitment to supporting businesses and financial institutions across the region.

Through our sponsorship of GTR MENA, we will be participating in a conference in collaboration with ITFA Middle East, to talk about the new era of trade finance distribution and specifically the types trade finance deals we are witnessing more capacity on and  associated insurance solutions which we can provide.