Jeddah, Kingdom of Saudi Arabia, 2nd March 2025. In a significant development for synergy and cooperation, the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC) and the International Islamic Trade Finance Corporation (ITFC) both members of the Islamic Development Bank (IsDB) Group signed a Documentary Credit Insurance Policy (DCIP). This strategic cooperation marks a robust step forward in managing and mitigating risks associated with Letters of Credit (LC) transactions involving Shariah compliant goods and services across OIC member countries and beyond, helping strengthen the economic resilience of these member countries.

The policy will provide critical coverage for ITFC transactions, enhancing trade confidence and facilitating smoother financial operations in global trade involving Shariah compliant products and services, thereby benefiting the broader economic landscape of the member countries. It is designed to provide ITFC with a comprehensive risk management tool to safeguard its LCs Confirmation transactions. The initiative seeks to address inherent risks associated with international trade and these robust risk mitigation measures are poised to support increased trade volumes among member countries, thereby contributing to the enhancement of intra-OIC trade as well as international trade. Increased trade strengthens the bonds between these countries, ensuring that risks are managed adeptly and contributing to sustainable development and overall regional prosperity.

Speaking on the occasion, Dr. Khalid Khalafalla, Chief Executive Officer of ICIEC, said: “This policy is a testament to our commitment to fostering secure and robust trade finance solutions, in perfect synergy with our fellow IsDB Group member, ITFC. With the DCIP, we are not only strengthening ITFC’s ability to manage inherent risks in LC transactions but also uniting our efforts to promote smoother and more reliable trade flows among Shariah compliant markets, ultimately benefiting all our member countries.”

Nazeem Noordali, Officer-in-Charge CEO of ITFC, added: “This Documentary Credit Insurance Policy is a crucial step in fortifying trade resilience across our member countries. By mitigating risks associated with Letters of Credit transactions, ITFC is reinforcing its commitment to fostering secure and seamless trade flows that support economic stability and sustainable development. Our collaboration with ICIEC ensures that businesses and financial institutions have the confidence and security needed to expand their trade activities, ultimately driving economic development and greater prosperity for our Member Countries”.