In a move designed to help Malaysian investors, contractors doing business in Organization Islamic Cooperation’s (OIC) member countries, ICIEC, and Exim Bank Malaysia (MEXIM), the national export-import credit bank of Malaysia, signed a Facultative Reinsurance Agreement (FRA) in the sidelines of the 3rd  Annual Meeting of Aman Union (a group of Arab and Islamic Export Credit Agencies) which is being held in Kuala Lumpur on 21st and 22nd  October 2012 at Mandarin Hotel.

The FRA was signed by Dr. Abdel Rahman EI-Tayeb Taha the Chief Executive Officer of ICIEC and Datuk Mohamed Hashism Hassin, the Chairman of the MEXIM.

The Agreement aims to provide reinsurance agreement in export credit and political risk insurance to Malaysian companies doing business abroad. It is believed that there is strong demand for export credit and political risk insurance from Malaysian companies especially after the economic crises and political turbulence in  the  Middle  East.  Malaysian companies  will  benefit  from the cooperation of  the  two signatories by insuring their investments in  ICIEC’s member countries against the risk of war, civil disturbances, expropriation, transfer restrictions, and  non-honoring of sovereign financial obligations of the host country. Both institutions strongly believe that by joining forces they will meet the greater needs of Malaysia companies for export credit and political risk insurance and thereby encouraging them to invest more and with confidence in OIC member countries.

Commenting on the agreement Dr. Taha said “Malayisan companies are very active in doing business in OIC member countries especially in the Middle East, Africa, and CIS countries, this is where ICIEC’s expertise lies. On the other hand, Malaysia Eximbank is the first address that any Malaysian companies can think of for the insurance of export credit. Therefore I believe this is the right combination at the very right time” he concluded.