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 e cient 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 provid ing 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.
