ANNOUNCEMENT 20 Jun 2018

Between July 2017 and June 2018, the UK Export Finance agency (UKEF) provided financing to support property construction in the United Arab Emirates by UK companies.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

UK Export Finance agency, Transparency data, UK Export Finance: Businesses supported 2017 to 2018, published on 20 June 2018: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/718494/uk_export_finance_businesses_supported_in_2017_to_2018.csv/preview
UK Export Finance agency, How to access export credit insurance, a guide to UK export finance's export insurance policy, Version 1.0, May 2015: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/562051/UKEF_Broker_toolkit_Oct_2016.pdf
UK Export Finance agency, Guidance, Export Working Capital Scheme, Published 24 April 2013, Last updated 16 October 2017: https://www.gov.uk/guidance/export-working-capital-scheme-overview-and-how-to-apply

Inception date: 20 Jun 2018 | Removal date: open ended
Still in force

Trade finance

On 20 June 2018, the UK Export Finance agency (UKEF) published the list of beneficiaries of trade finance transactions for the year 2017/2018.

One of these beneficiaries was Sharjah Environment Co LLC, which was offered a loan (direct lending) of a total value of GBP 67,945,256 (USD 89,751,324). The loan finances the property construction in the United Arab Emirates by Carillion Construction Ltd and Zaha Hadid Ltd. UKEF noted that: "Since Carillion’s liquidation, its former joint venture partners have replaced Carillion and are completing the contracts". UKEF also provided a buyer credit and a loan to another foreign company in the UAE in support of property construction by Carillion Construction Ltd, see related state act.

Given that UKEF does not provide the exact date that the trade finance deal was signed, the most conservative inception date, i.e. the 20 June 2018, was set as the inception date.

The GTA includes various financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 20 Jun 2018 | Removal date: open ended
Still in force

Local sourcing

To be eligible for support from UKEF, the export contract value must have a minimum UK content of 20%. Foreign content imported and utilised as parts or components of the manufacturing process is considered as UK content.

 
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