ICIEC was voted as the “Best Export Credit Agency (ECA) in the Middle East and North Africa Region for 2014” by GTR (Global Trade Review) – the world’s leading news source, publisher and event organizer for global trade, commodity, export and supply chain finance industries magazine.
The recognition was conferred on ICIEC at the GTR MENA Leaders in Trade 2014 awards.
The ICIEC’s remarkable achievement over the last two decades compared with peer institutions catapulted the Jeddah, Saudi Arabia-based corporation to new heights, as shown by the success of its 14 products and policies in the field of trade, investment, and projects while at the same time providing trade and political risk reinsurance to member countries worth US$24.4 billion in decades.
ICIEC started its operations in 1995 with only three products – the Comprehensive Short-Term Policy (CSTP), Bank Master Policy (BMP), and Supplemental Medium-Term Policy (SMTP). As the membership grew from 15 countries in 1996 to 43 countries at present, the product mix likewise increased. Over two decades, ICIEC has been true to its vision and mission as a world-class multilateral insurer, playing a major role in the facilitation of trade and investment for member countries and a preferred partner for companies seeking access to new markets. As of 2014, ICIEC has facilitated over US$22 billion in trade transactions and US$4.3 billion in foreign direct investment in member countries, an increase of 29% compared to previous year.
It worth to note that, last year GTR changed the criteria in evaluating its leaders in trade winners, in which the magazine’s corporate readers were asked to vote in favour of the leading banks, financial institutions, insurers and brokers in the MENA trade finance market.

Your Excellencies the Governors and Delegations of MCs, Honorable Guests, Brothers and Sisters, Al-salam Alaykom Warahmatallah

It gives me great pleasure to congratulate you and ourselves for the 40^th anniversary of IDB which coincides with the 20^th anniversary of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

ICIEC was the first private sector oriented autonomous entity established within the Islamic Development Bank Group following the recommendation of the Standing Committee on Commercial and Economic Cooperation of the OIC (COMCEC) in its 1989 meeting in Istanbul, and came into being in 1994, and commenced business a year later.

I have the pleasure today to highlight some of the key accomplishments of ICIEC during the last 20 years.

The First achievement  is the creation of a first class credit and political risk insurance organization, employing industry best practices, managed by well-trained and dedicated staff, enjoying AA3 rating and the recognition and respect and cooperation of the international and regional credit and PRI insurance and reinsurance industry.  Thus providing the Islamic Financial Services industry with its only Sharia-complaint risk mitigation and credit enhancement service.

The second and more important achievement is that ICIEC has delivered on its mandate using a small paid capital and accumulated reserves of ID 140 million.  The corporation managed to do more than $ 18 billion of insurance cover facilitating 24 billion of exports, imports and investments for member countries. This achievement is indeed remarkable in view of the deteriorating economic and political risk environment and the resulting high risks ICIEC was relied upon to cover. It is also important to realize that 40% of ICIEC insurance capacity was attracted from the international reinsurance market.  This would not have been possible without the AA3 rating and high reputation ICIEC was able to build in the market.

-         At the end of the day for the member countries what is important is that , ICIEC has been able to significantly add to IDB mission to positively affect lives across our member states, by supporting critical projects in infrastructure sector, providing, electricity, and clear water, creating new jobs, transferring skills and technology, supporting food security through supporting countries coming out of conflict; Many of the transactions and projects we insured would not have materialize without our insurance cover.

-         We should also not forget ICIEC contribution to the development of the export credit insurance industry in member countries through TA, reinsurance, and exchange of information with national export credit agencies under the umbrella of the Aman Union which ICIEC established in 2009.

-         Finally I would like to stress the fact despite the challenging business environment,  not only have ICIEC preserved its paid-up share capital, but was able to increase it through accumulating substantial reserves 27% resulting in a strong balance sheet and a sound financial position.

 Challenges and Obstacles

These achievements did not come easily. Formidable obstacles and challenges had to be surmounted and overcome.

The small capital base of the Corporation limiting ICIEC insurance capacity. Yesterday the utilization of insurance reached the alarming level of 96%. .  I take this opportunity to call upon the member countries to enhance the financial resources of the corporation by subscribing to the remaining part of the capital increase you approved three years ago,  to enable ICIEC to meet the increasing demand for its services by member countries during their difficult times.

Going forward the most critical challenges are those relating to the business strategy:

1.    Should ICIEC continue to focus on short term trade credit insurance business despite fierce competition and low premium rates, or focus more on the more lucrative developmental medium and long term business in which it has a competitive edge, but is riskier than short term business?

2.    How can the Corporation deal with the deteriorating political and economic environment in several member countries? Should it lead the market as insurer of last resort, as its mandate implies, or follow the market and adopt a risk-averse attitude?

3.    How can the Corporation improve its financial performance and at the meantime expand its business in view of the low premium income and high operating cost?

Finally, I genuinely believe that whatever the challenges faced by the Corporation, with your support, ICIEC has what it takes to come up with the appropriate solutions to enable it to develop and continue to deliver on its mandate in the service of its member countries.

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ICIEC Celebrates 20th Anniversary

In the occasion of its 20 years Anniversary. ICIEC held a seminar titled “The Future Role of ICIEC in Supporting Trade and Investments In Member Countries“ on Tuesday 24 June 2014 on the margin of its the Board of Governors’ 21st Annual Meeting, which was held on June 20th, 2014 in Hilton Hotel, Jeddah.

The event coincided with the 40th Anniversary of its parent Islamic Development Bank (IDB) which was inaugurated by HRH Prince Salman Bin Abdulaziz, the Crown Prince, Deputy Premier and Defense Minister of the Kingdom of Saudi Arabia, and the Board of Governors’ 39th Annual Meeting, which was held on June 25th, 2014.

The participants discussed the challenges that ICIEC and other providers of credit and political risk insurance need to overcome and the opportunities to take advantage of so that they cater to the ever-changing needs of their clients.

Dr. Abdel-Rahman Taha, the CEO of ICIEC, on the occasion commented “the seminar aimed at taking a forward-looking approach to ICIEC’s relevance to the economic aspirations of its member countries”.

The seminar was attended by representatives of a number of IDB/ICIEC Member Countries, relevant international institutions, experts in the field of export credit insurance, as well as client and potential client of ICIEC inside/outside Saudi Arabia.

The International Union of Credit & Investment Insurers (Berne Union), was also represented by its Vice President, Dr. Andreas Klasen, who delivered the keynote address. Peter Jones, Former Secretary General of Berne Union moderated the a panel discussion on “The Future Role of ICIEC- How can ICIEC best contribute to the developments of its Member Countries” ?

ICIEC Organizes a Seminar on: “The Future Role of ICIEC in Supporting Trade and Investments In Member Countries”

This year, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) celebrates its 20 years Anniversary which coincides with the 40^th Anniversary of its parent Islamic Development Bank, and at the margin of the Board of Governors’ Annual General Meeting of the IDB Group, which will be held from 26^th June 20^th 2014, under the Patronage of the Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz, in Hilton Hotel, Jeddah, ICIEC will organize a seminar titled “The Future Role of ICIEC in Supporting Trade and Investments In Member Countries“ on Tuesday 24 June 2014 at the same venue. 

Dr. Abdel-Rahman Taha, the CEO of ICIEC, said “As its title indicates, the seminar seeks to take a forward-looking approach to ICIEC’s relevance to the economic aspirations of its member countries. In this respect, the seminar will discuss the challenges that ICIEC and other providers of credit and political risk insurance need to overcome and the opportunities to take advantage of so that they cater to the ever-changing needs of their clients.”

The seminar will gather representatives of a number of IDB/ICIEC Member Countries, relevant international institutions, experts in the field of export credit insurance, as well as client and potential client of ICIEC inside/outside Saudi Arabia. One day seminar will witness the participation of The International Union of Credit & Investment Insurers (Berne Union), will be represented by The Vice President, Dr. Andreas Klasen, who will deliver the keynote address.

Under the Chairmanship of H.E Dr. Ibrahim bin Abdulaziz bin Abdullah Al-Assaf, the Finance Minister and the Governor of the Islamic Development Bank (IDB) Group for Saudi Arabia, the Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of the Group, approved in its 21st Annual Meeting, the Annual Report and the Financial Results for 1434H (2014) for the Corporation. The Annual Meeting was held at Hilton Hotel in Jeddah, Saudi Arabia, on 26th June 2014, in conjunction with the 39th IDB Annual Meeting. 

The annual report shows that the business insurance provided by ICIEC to its 41 member countries’ investors and exporters stood at USD 3.3 billion, a growth of 9% compared to 1434H (2013). Total indemnification paid by ICIEC to its clients amounted to US$ 1.6 million, while recovers registered  US$ 2.31 million, an increase of 9% over last year. 

Commenting on the overall results, Dr. Abdel-Rahman Eltayeb Taha, the CEO of the Corporation, said “Despite the continuing effect of the global financial crisis and the subsequent economic recession that caused a world-wide decline in trade and investment flows, ICIEC was able to support significant trade flows of member countries and key development projects in post-conflict and fragile member countries”. 

It is worth mentioning that at the margin of the Annual Meeting ICIEC celebrated its 20 years Anniversary which coincides with the 40th Anniversary of its parent Islamic Development Bank. As part of the celebration, ICIEC organized a seminar titled “The Future Role of ICIEC in Supporting Trade and Investments In Member Countries”. 

Qatar Development Bank’s export development agency, TASDEER, announced on 11 December 2013 the conclusion of the Fourth “Aman Union” Annual Meeting which gathered representatives of export risks insurance sector. The meeting was held at Renaissance Doha City Center in Qatar, from 9 to 11 December 2013, and was attended by a number of Aman Union members, in addition to senior officials, decision makers and international experts from related sectors such as Insurance and political risks, reinsurance, and banking and insurance information. The meeting aimed at discussing and highlighting the importance of promoting the insurance of commercial and non- commercial risks, the ways to benefit from this type of insurance and strengthening mutual commercial relationships between Qatar and participating countries. 

The meeting consisted of a number of talking sessions and seminars on recent issues and challenges faced by the credit and political risks insurance sector on different levels, means to develop procedures and systems in place to enhance relationships between stakeholders, and facilitating work flow. 

Commenting on the event, Mr. Abdulaziz Bin Nasser Al-Khalifa, CEO, Qatar Development Bank: “We are glad to announce that the Fourth Aman Union Annual Meeting was a huge success; it represented to us a unique opportunity to exchange experiences and talk about the most important issues and challenges in the risks insurance sector, in the presence of esteemed international experts in the industry. The meeting also enabled us to explore various methods that help growing and promoting of Qatari exports with participating countries”. 

“The importance of organizing such events lies in connecting all parties, keeping them informed about the ramifications and effects of global economic conditions on the insurance industry, and exploring new products and experiences in the sector. This will enable us all to expand the scope of mutual coordination, develop bi-lateral relationships, and strengthen joint cooperation between member states in the Union”, he added. 

Dr. Abdel Rahman El-Tayeb Taha, the Secretary General of the Aman Union, who is also the CEO of the Islamic Corporation for the insurance of Investment and Export Credit Insurance (ICIEC), expressed deep concern over the continuing cycle of sluggish global economic growth and the political instability in some member countries which could have negative impact on the industry. “The union is now holding its 4th Annual Meeting in difficult economic times that will require more effort in the industry to face these challenges”. "We are confident this is yearly gathering which assembles credit and political Risks Insurers and Reinsurers is playing an important role in bringing the industry leaders together to create a collective impact to further advance the future of the export credit insurance and reinsurance industry in Islamic and Arab Countries". stated Dr. Taha. Established in 2009, Aman Union is a specialized forum that gathers insurance organizations and agencies for commercial and non-commercial risks and exports reinsurance companies in the Middle East, Africa, Asia and Europe. The Union aims at promoting and developing commercial and non-commercial risks insurance sector among member states and enhancing their joint ties through a number of activities and initiatives, including: developing various agencies and exchange of information, data, and research studies in the sector. The Union comprises of 17 full members, 3 associate members and 9 observing members. 

About QDB
Qatar Development Bank provides, through its export development agency, TASDEER, private sector exporting companies with financial solutions, insurance credits and consultation services, in addition to support of companies to enable them in developing their exporting competencies, through participating in a wide range of exhibitions and events around the world, such as global exhibitions, joint programs, exports development and promotion, training workshops, and publishing of specialized guidelines such Trade Secrets and Qatari Exporters Guide. 

Dr. Abdel Rahman El-Tayeb Taha, the Secretary General of the Aman Union, who is also the Chief Executive Officer of the Islamic Corporation for the insurance of Investment and Export Credit Insurance (ICIEC), and Mr. Abdulaziz Bin Nasser Al-Khalifa, Chief Executive Officer of Qatar Development Bank Launched today the AMAN UNION Database. The Database was lunched in Doha, Qatar in the presence of more than 80 representatives from 20 countries representing national ECAs, Credit Information Agencies, Reinsurance, Brokers, Banks and Debt Collection Agencies, attending the 4th Annual Meeting of the AMAN UNION, hosted by Qatar Development Bank at the Renaissance Doha City Centre Hotel, Qatar from 9 – 11 December 2013. 

The Database is the first of its kind in the Arab and Islamic region, established for the benefit of national export credit insurance agencies in the region and will enable the Subscribers in the Database to share and purchase credit information reports, credit opinions on entities worldwide and to exchange their underwriting experience on buyers and banks.

 Dr. Abdel Rahman El-Tayeb Taha, the CEO of ICIEC, in his capacity as the Secretary General of the AMAN UNION said “We are happy that Qatar witnesses the official launching of the AMAN UNION Database, which we are confident that the Database will help solving the issue of reliability of credit information in the region”. Dr. Taha extended invitations to the Export Credit Agencies in OIC member countries who are not currently subscriber of the Database, to join the Database in order to benefit from its services. 

ABOUT AMAN UNION
The AMAN UNION was launched under the leadership of ICEIC, the Islamic Corporation for the insurance of Investment and Export Credit Insurance, an affiliate of the Islamic Development Bank based in Jeddah, and Dhaman, the Arab Investment and Export Credit Guarantee Corporation based in Kuwait. Thus, during the 1st Joint Meeting of Arab and Islamic ECAs held in Beirut, Lebanon on October 27-28, 2009. The Union is the first organization gathering investment and export credit agencies in the Arab and Islamic World under one umbrella, it aims at enhancing cooperation among Arab and Islamic export credit institutions and encouraging the development of investment and export credit insurance industry in its Member Countries. The Union also offers technical assistance to establish new agencies while also enhancing the insurance capacity of existing agencies. Including ICIEC and Dhaman, the Union currently has 17 members from more than 15 countries.  

• In the presence of more than 80 representatives from 20 countries

Qatar Development Bank through its export arm ‘Tasdeer’ announced today that it will be hosting the 4th Annual AMAN Union Meeting for representatives of the risks insurance industry in Islamic and Arab Countries. The meeting will take place at Renaissance Doha City Centre Hotel, Qatar from 9 – 11 December 2013.

The event will bring together Aman Union members and experts from a number of related sectors, including credit and political risk insurance, reinsurance, banking and credit information, to discuss the importance of promoting and developing the credit and political risks insurance industry through the export development processes.

Abdulaziz Bin Nasser Al Khalifa, CEO, QDB said: “We are delighted to be hosting the 4th Annual Aman Union Meeting. Hosting an event of this calibre gives us the opportunity to meet with representatives of member countries different countries and showcase the processes of promoting and developing Qatari exports. It is an important opportunity to raise awareness share experience on how to develop risks insurance and promote exports and discussions. This process will lead to base the framework for cooperation between the members in the union. ”

Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive of the Islamic Corporation for the Insurance of Investment and Export Credit in his capacity as the Secretary General of AMAN UNION stated that: "the Union now is holding its 4th Annual Meeting in the continuing cycle of the sluggish Global economic growth, that's needs more work in the industry to face the challenges faced”. “We are very happy to hold this year the Meeting in Doha, hosted by Qatar Development Bank. I am confident that the gathering will enable members and partners to share their underwriting experience on buyers and banks and exchange technical innovations that will help advance the industry and improve its efficiency”. He added

Established in 2009, AMAN Union is a professional forum assembling commercial and non-commercial risk insurers and reinsurers exports from the Middle East, Africa, Asia and Europe. AMAN Union aims to promote and develop the commercial and non-commercial risks insurance industry within member countries, as well as strengthen mutual relationships among members through a range of activities including development of various agencies and exchange of industry related information, studies and research. AMAN Union comprises of 17 full members, three associate members and nine observer members. 

QDB’s export arm ‘Tasdeer’ provides private sector exporters with financial solutions, credit insurances and advisory services, in addition to supporting businesses in developing their export capabilities through participating in a wide range of events and activities across the world, such as global exhibitions, match making programs, export development and promotion, training workshops in addition to publishing specialised industry guides like Trade Secret and Qatar Exporters Directory. 

ICIEC
Jamel eddine Naga
Promotion & International Relations Unit, ICIEC
Tel : +966 12 6467608
Fax : +966 12 6443447
Mobile: +966 5 68618945
E-mail: jnaga@isdb.org 

ICIEC and APCIORP Sign a Documentary Credit Insurance Policy

In Bahrain, ICIEC and Arab Petroleum Investments Corporation (APICORP), the Multilateral Development Bank owned by the ten member nations of the Organization of Arab Petroleum Exporting Countries (OAPEC), has signed a Documentary Credit Insurance Policy (DCIP).

The Documentary Credit Insurance Policy will help APICORP effectively manage risks affecting its Letter of Credit (LC) transactions and LCs of petroleum products exports in ICIEC member countries. The DCIP is an effective tool to mitigate risk of non-payment of Letter of Credit (LC) arising from a variety of factors. These include insolvency of the buyer/ issuing bank; failure or refusal of the issuing bank to provide reimbursement on due date; currency inconvertibility and transfer restrictions imposed by issuing bank's country; expropriation, confiscation or government intervention in the business of the issuing bank; and war or civil disturbance in the issuing bank's country. The DCIP provides insurance coverage to transactions in which a minimum of 30% of the added value in the products transacted come from ICIEC member states.

Ahmad Bin Hamad Al-Nuaimi, Chief Executive and General Manager of APICORP said: “We are extremely happy to advance our cooperation with the IDB’s ICIEC by signing the DCIP. Trade finance forms an important focus of our diversification strategy and contributes significantly to our mandate to support Arab energy industry development. The DCIP will help us reliably protect and control risks in trade finance transactions, which in turn will help us better support the trading needs of Arab energy companies and enhance our trade-finance business growth. The ICIEC’s extensive geographical remit and its mandate to encourage exports from member countries, some of whom are our own shareholders, make it a highly strategic partner for us. Partnerships like these are key to our ability to expand our trade finance business and create value and growth for energy companies in the region.”

At the signing ceremony, Dr Abdel-Rahman El-Tayeb Taha the Chief Executive Officer of ICIEC stated: "Events in the region show clearly the important role Credit and Political Risk Insurance can play in supporting trade and attracting foreign investment into countries which need it the most. We are confident that the signed policy will help APICORP in mitigating risks related to the default and non-payment of Letters of Credit confirmed by APICORP and thereby help to expand their trade transactions and ultimately increase exports from member countries.” Dr. Taha added: “This signed DCIP between ICIEC and APIRCORP is the first signed between ICIEC and a joint Arab Financial Institution and represents a beneficial alliance between two sister multilateral institutions.”

It is worth mentioning that APICORP offers a range of trade finance solutions for import and export transactions designed to meet the challenging needs of energy companies in the Arab world. APICORP has rapidly grown its trade finance and structured commodity finance activities over the last three years complementing its historically strong project finance franchise. Trade and structured commodity finance services and loans provided by APICORP in 2013 helped finance hydrocarbon transactions involving the world’s largest hydrocarbon commodity traders transacting with Arab-based refiners. 

The Republic of Mozambique has recently acceded to the membership of ICIEC. This brings the number of member countries to 41, and several other members countries from Organization Islamic Cooperation (OIC) are in the process of completing the membership requirements.

Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive Officer of ICIEC said “The Republic of Mozambique’s membership opens the door for its private and public sectors to benefit from risk mitigation services offered by ICIEC to expand their exports worldwide. Similarly, it allows exporters, banks and investors from other member and non-member countries, to cover risks related to their operations in Mozambique.”

“We seize this opportunity to invite exporters, banks and investors in all member countries, including those in Mozambique, to benefit from the services it offers for management of commercial and political risk” Dr. Taha added.