By Courtney Trenwith
Non-banking entity to help facilitate trade between UAE and Asia, says bank
National Bank of Fujairah (NBF) has established a non-banking subsidiary in Hong Kong to serve UAE customers doing business in Asia.
Called NBF Trade Services (HKG) Limited, it is part of an agreement with trade services company Wells Fargo and will help strengthen trade flows between the Middle East and Asia.
It is NBF’s first overseas subsidiary and will help facilitate the reissuance of import Letters of Credit (LCs) to beneficiaries in Asia, in effect providing NBF customers easier access to their trading partners and reducing payment turnaround times and required documentation and speeding up the delivery of goods.
NBF chief executive Vince Cook said the bank was working to enhance its trade finance proposition.
“The Hong Kong subsidiary is a significant step towards raising our international profile and establishing us across strategic global trading links,” he said on Tuesday.
“Our Hong Kong subsidiary comes at a time when cross-border flows between the UAE and China are expanding at a rapid pace, making it the perfect platform to springboard our clients into the thick of the action.
“It is also a welcome extension to the successful and strategic partnership that exists between NBF and Wells Fargo, and I thank them once again for their ongoing support as we make further inroads into new markets.”
China-UAE trade has soared by an average 35 percent every year for the past decade, surpassing $35bn last year, according to the Dubai Chamber of Commerce and Industry.
It now represents 10 percent of the Gulf state’s total trade excluding oil.
Also, about 60 percent of China’s total trade passes through the UAE, from where it is re-exported to Africa and Europe, making it one of the Asian giant’s most important trade partners.
Numerous financial institutions operating in the Gulf have established offices in China in recognition of the growing importance of trade between the two.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.