The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (http://ICIEC.IsDB.org) and Saudi EXIM Bank have signed reinsurance agreements during the Islamic Development Bank’s Private Sector Forum (PSF) that will help facilitate the flow of trade finance into and out of the Kingdom of Saudi Arabia.
The Facultative Reinsurance Agreement will see ICIEC provide reinsurance to Saudi EXIM Bank coverage of confirmed documentary credits. The agreement encompasses documentary credits confirmed by Bank AlBilad and Arab National Bank – the original policyholders – and will create additional capacity for Saudi EXIM Bank to support exporters and importers of essential goods and services in Saudi Arabia.
Under the agreement, ICIEC’s reinsurance will provide protection against commercial and political risks of issuing banks in the ICIEC Member States. The combined approved limit for the reinsurance agreements is $138 million over a 12-month tenure.
Saudi EXIM Bank is an Export Credit Agency (ECA) that aims to promote the development and diversification of Saudi exports and increase their ability to compete in global markets in a range of sectors. It does so through the provision of export financing, guarantees, credit insurance and other facilities.
Mr Oussama Kaissi, Chief Executive Officer of ICIEC, welcomed the partnership which would boost Saudi Arabia’s competitiveness as well as its cooperation with the other Member States. “By providing this facultative reinsurance, ICIEC gives extra confidence to banks – as well as exporters and importers – those transactions will be protected against the range of risks confronting marketing participants today.”
Distributed by APO Group on behalf of Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Media Contact:
Rania Binhimd, Communications Planner
Email: Rbinhimd@isdb.org
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About ICIEC:
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is the insurance arm of the Islamic Development Bank (IsDB) Group. The Corporation is uniquely the largest Shariah-compliant multilateral insurer in the world and has led from the front in providing a comprehensive suite of insurance solutions to companies and parties in its 48 Member States. ICIEC was established in 1994 with the mandate to strengthen economic relations between OIC member countries and to promote intra-OIC trade and investments by providing Shariah-compliant risk mitigation tools and financial solutions. ICIEC has for the 14th consecutive year earned an “Aa3” insurance financial strength credit rating from Moody’s, ranking the Corporation among the top of the Credit and Political Risk Insurance (CPRI) Industry. ICIEC’s resilience is underpinned by its sound underwriting, reinsurance, and risk management policies. Cumulatively, ICIEC has insured more than US$ 83bn in trade and investment and US$2.2 bn in support of FDI at end of 2021. Its activities were directed to specific sectors including banking, energy, manufacturing, infrastructure, healthcare, and agriculture. For more information, visit: http://ICIEC.IsDB.org
