Italian export credit agency Sace is working on a pipeline of new projects worth €5bn ($5.61bn), to support financing needs of both large corporate firms small and medium-sized Italian companies in the wider Middle East and North African region.

Sace is currently managing €4.7bn portfolio of insured transactions and guaranteed investments in the region, more than 70 per cent of which are concentrated in the six-member economic bloc of GCC, Marco Ferioli, head of MENA region told a press conference.

The agency has already signed a letter of intent (LoI) including initial term sheet for up to €1bn umbrella financing facility with Dubai Aviation City Corporation (DACC) to fund development of $33bn Al-Maktoum international Airport in Dubai South, he told MEED.

The agency will finance potential opportunities from the umbrella facility that may arise from Dubai Expo 2020 infrastructure investments requirements within the area, which includes the airport general aviation hub, residential, golf, commercial, logistics districts, office park and the Expo site itself.

There are several transport, power and oil and gas sector projects including extension of Dubai Metro’s Red Line route 2020, $1.5bn expansion of Jebel Ali refinery and power and petrochemical projects in Egypt for which Sace is backing Italian firms, he said.

For the metro expansion project, he said Roads and Transport Authority hasn’t officially shortlisted bidders yet. “This is how we understand it,’’ he said. He expects Dubai to take a decision on winning bid soon.

There is no visibility, however, when the government plans to start awarding major construction contracts for Al-Maktoum Airport as it unclear which of the project components will go into construction phase first. Sace expects main contract for the aviation hub to be let by the end of this year, for which the agency is backing Italian company with an export credit facility.

The Italian agency has also recently signed a MoU with Abu Dhabi Ports which provides for the assessment of major projects for Italian companies, particularly of those related to the development of the Khalifa Port, the port of Abu Dhabi, and the free zone of Kizad, Ferioli added.

With the recent launch of Dubai office, Sace’s international network counts 10 hubs across the globe. “Through its Dubai base, Sace will closely follow the whole MENA region,’ Michal Ron, head of international business at the firm said.

Despite a fall in the commodities prices, the agency hasn’t encountered “any specific’’ problems in terms of project cancelation, she said, adding that the pipeline of €5bn of projects, lined up for financing is unlikely to be affected.

Despite the difficult economic environment, now is the right time to expand into the region as the government’s lack self-sufficiency in terms of financing the big-ticket projects, Alessandra Ricci, Sace’s chief business office told the conference. “It’s more relevant now. The need for competitive solutions is huge,’’ she said.

Sace, which has recorded 16.1 per cent year-on-year growth worth €6.2bn of Italian exports to the UAE last year, and bilateral trade is likely to increase by up to 15 per cent in the run up to Expo 2020.

Luxury sector including Jewelry, furnishing and other manufactured goods accounted for 23.2 per cent of total exports to the UAE last year. Mechanical industry with 20.5 per cent, automotive with 7.4 per cent and fashion sector with 7.3 per cent made up the rest of Italian exports, according to Sace chairman Giovanni Castellaneta.