Korea Trade Insurance (K-sure) and the UAE-based National Bank of Abu Dhabi (NBAD) have signed a memorandum of understanding (MoU) to arrange trade and project financing loans to South Korean companies that have secured export insurance coverage from K-sure.

Founded by the Korean government in 1992, K-sure operates export and import insurance programs for the purpose of facilitating global trade.

In 2010, K-sure covered 22.9% of the total exports of Korea, meeting demand from clients ranging from domestic large and small/medium businesses to foreign and domestic financial institutions.

NBAD said that the MoU between and K-sure will improve the competitiveness of South Korean companies that are looking to secure future industrial plant and other construction orders in the Middle East.

South Korea is aiming to raise its trade volume to over $1 trillion this year from $892.6bn reached in 2010, with related insurance protection expected to play an important role in promoting exports and imports.

NBAD corporate and investment banking division senior general manager Mark Yassin said that NBAD is committed to the development and progress of Abu Dhabi and the achievement of Abu Dhabi Vision 2030, the blueprint of sustainable growth in the Emirates.

"Therefore, we are looking forward to strengthen our partnerships to facilitate strategic programs that are essential in realizing Abu Dhabi Vision 2030," Yassin said.