One of the priority development goals for ICIEC is to ensure the well-being and economic prosperity of member country populations. Human development efforts from ICIEC include underwriting projects that contribute to access to basic infrastructure and services, including health, nutrition, education and sanitation. Promoting access to these services inherently improves the well-being of and quality of life for member country citizens. In turn, these healthier populations are more productive and are better enabled to contribute back into their country’s economy.

Job Creation

ICIEC recognizes the opportunities presented by the growing working age population within OIC countries and the job creation concerns they face. Through supporting FDI and exporters and facilitating trade, ICIEC contributes to both creating new jobs and sustaining existing ones. As companies increase their exports, they scale up operations, leading to labor demand on the economy and more employment opportunities. ICIEC emphasizes supporting labor- intensive sectors where significant employment opportunities can be created.

Access to Infrastructure

Improving access to infrastructure is among the top priorities for ICIEC’s development impact. ICIEC’s multilateral and preferred creditor status make it an attractive partner for investors and stakeholders embarking on such projects. ICIEC also provides much needed insurance for financing large development projects, particularly in high risk investment countries where mobilizing large sources of finance can be risky without adequate mitigants.

Access to Basic Social Services

ICIEC is also committed to improving access to basic social services particularly health and water services. Supporting access to high quality health care promotes healthier lives for all OIC Member Countries’ citizens leading to higher productivity and overall economic growth. Improving access to water services is crucial for most OIC countries that have scarce water resources and are even more susceptible with climate change.

Through our mandate and a variety of insurance solutions, ICIEC catalyzes strategic projects and improves investment attractiveness for each individual country. ICIEC supports member country development agendas by underwriting investments that contribute to their chosen strategic sectors. ICIEC’s presence as an investment partner provides a measure of reassurance and encouragement to other potential investors seeking opportunities in countries with high perceived risk. The investment projects often provide employment, enhanced, modern and efficient infrastructure, and better quality of life for citizens.

Increased Foreign Direct Investment and Investor Confidence

Foreign Direct Investment (FDI) is an important source for economic growth and sustainability through providing capital investment into the economy that is not otherwise available from domestic sources. FDI provides job creation and knowledge transferswhen foreign companies establish subsidiaries in the host country. As foreign firms invest in OIC Member Countries they are often faced with a new, unfamiliar environment with various risks and uncertainties, including political and social risks as well as macro and microeconomic risks. ICIEC insures against many of these risks, allowing firms to expand in higher-risk countries with otherwise attractive investment opportunities.

Strategic Sector Support

ICIEC supports infrastructure development in support of strategic sectors of Member Countries, often insuring projects that help meet specific member country development agenda objectives. These projects cover a variety of sub-sectors including health, social and transportation infrastructure and energy. In addition to providing infrastructure development, these projects also create jobs, support the local economy via local procurement of services and equipment; and foster technology and knowledge transfer.

Improved Access to Trade Finance for LIC/LDC Member Countries

ICIEC’s risk mitigation services are especially crucial for low income and least developed countries (LIC/LDC), where market failures in regard to trade finance are known to be highest. ICIEC has provided much needed trade credit insurance to LDCs through insuring various investments, trade transactions and supporting Issuing Banks - helping these banks to access international financial markets and build their trade finance capacity. Insuring cross-border transactions in LDCs ensures that businesses are able to execute their import or export transactions smoothly where foreign buyers or sellers might view them as high risk.

Financial sector health and development can be directly related to economic and member country development and is essential for trade facilitation. Countries with more developed financial sectors have an advantage in global trade as they have the capability to engage in more complex and higher-volume transactions. Mature financial sectors also facilitate full participation of consumers in the economy, creating more dynamic markets which are more likely to attract foreign direct investments.

Partnerships with Financial Institutions

Forging strategic partnerships is crucial in driving financial sector development. In addition to supporting national Export Credit Agencies, ICIEC seeks to expand its client and beneficiary base with local financial institutions. In doing so ICIEC is fulfilling both its outlined development mandate as well as SDG 17. Since its inception, ICIEC has supported numerous financial institutions through the provision of its services.

Improved Access to Islamic Financial Services

ICIEC seeks to strengthen the Islamic banking sector and demonstrate to a range of government and major financial institution actors that Islamic financing instruments and mechanisms are successful conduits for private sector development and growth. ICIEC promotes access to Islamic finance through takaful insurance and its Bank Master Policy (BMP) instrument. As the takaful credit and political risk insurer, ICIEC has pioneered a new form of export credit and investment insurance based entirely on Islamic financing, investment and insurance principles. Under its current 10- year strategy and in line with the IDBG strategy framework, ICIEC seeks to further expand its positioning to become a market maker in the takaful insurance market.

Export sector development is essential to growth in any economy and vital for any country to fully participate in global trade. The development impact reaches full potential as the export sector grows – more goods are sold, meaning income is generated, taxed and supplied to the government. This income can then be used to finance public projects that foster even further development in the country.

Increased Exports from Member Countries

Through the provision of its various export insurance products, ICIEC minimizes commercial and political risks involved in cross-border trade. ICIEC’s support to exporters and banks in facilitating trade between Member Countries and with the rest of the world. ICIEC also aims to facilitate and increase intra-OIC exports, encouraging businesses to take advantage of the diverse resources in Member Countries.

Enhanced Access to Markets

Accessing new markets can be daunting for exporters for a myriad of reasons including political risk and lack of available credit data. This perceived risk can lead to adverse effects on an exporter’s growth prospects. ICIEC’s products provide exporters with assurance when entering new and potentially riskier markets. ICIEC’s insurance is not only useful to firms seeking to access new markets but also for firms looking to increase exports and service delivery to their existing markets. Expansion in existing markets can also entail risks given the various economic, political and social uncertainties. The insurance ICIEC provides gives these firms the protection they need to expand their market share.

SME Integration into Export Markets/Value Chains

SMEs play a significant role in economic development and job creation both in developed and developing countries. However, in most OIC member countries,SMEs continue to face significant financing gaps. ICIEC has played a leading role in supporting SMEs in OIC Member Countries to integrate in export markets and value chains through underwriting SME loan facilities or insuring Letters of Credit for the importation of capital goods by SMEs to become more productive and competitive.

Increased Capacity of National ECAs

Many member countries have embarked on establishing their own national Export Credit Agencies (ECAs), often starting off with limited insurance and technical capacities—especially in developing countries. ICIEC provides capacity building and financial services to support these endeavours, closely cooperates with them, and provides additional insurance capacity through facultative and treaty re-insurance mechanisms. Increasing the capabilities of these ECAs allows them to provide support to businesses in parallel with ICIEC’s offerings, facilitating even more exports for their member country.