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.

Tuesday, July 17, 2012Under the Chairmanship of Dr. Ahmed Muhammad Ali, the President of Islamic Development Bank (IDB) Group, the Board of Directors (BOD) of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), held its 68th Meeting on 16th July 2012 at the IDB Headquarters in Jeddah. The BOD members took note of the business results of first half of 1433H (December 2011-May 2012) presented by Dr. Abdel Rahman El-Tayeb Taha, the CEO of the Corporation.

The report showed that new insurance commitments reached USD 1.1 billion compared to USD 1.7 billion registering a decrease of 36% from the comparable period of 1432H (2011. However, the business insured (total utilization of the commitments) during the first half of 1433H reached USD 1.5 billion, keeping the same level as last year. The report also showed that the Corporation paid a claim amounting to USD 1.3 million as a result of a Syrian company default on payment to an international financial institution.  

Commenting on these results, the CEO of ICIEC, Dr. Abdel-Rahman El-Tayeb Taha said, “The decrease of  the new insurance commitments is due to the prevailing economic crisis in the Euro-Zone, and the continuing political instability in some member countries which constrained the ability of the Corporation to provide credit and political risk insurance cover it in a number of traditional markets in Europe and in member countries. Thus, despite the large increase in demand for credit and political insurance by member countries, the Corporation was compelled to reduce its insurance commitments. Dr. Taha warns, “If the economic crisis in Euro-zone and the region turmoil continue, we may expect to receive more claims during the second half of the year”. 

During the meeting, the BOD also considered the application of the Republic of Iraq to join ICIEC’s membership and recommended to the Board of Governors to approve the admission of Iraq as a member. Dr. Taha said, “The membership in ICIEC opens the door for both their private and public sectors in that country to benefit from services offered by ICIEC. Similarly, it allows exporters, banks and investors from other member countries, to cover risks related to their operations in Iraq” 

The CEO of the Corporation took the opportunity to inform the members of the BOD that Moody’s investors Service, one of the leading rating agencies in the world, has re-confirmed for the fifth consecutive year the Aa3 rating insurance financial strength rating (IFSR) which was assigned to ICIEC for the first time in April 2008. 

Contact:
Jamel eddine
NagaPromotion and International Relations Unit  
Mobile: +966568618945
Direct: +96626467608
Fax: +96626379755  
E-mail : jnaga@isdb.org 

AMAN UNION received the first 2 applications for subscribing to AMAN UNION Database Center. They were submitted by ICIEC and DHAMAN (the Arab Investment & Export Credit Guarantee Corporation) based in Kuwait.  The AMAN UNION Database Center will be the first of its kind to be established for the benefit of national export credit insurance agencies in the Arab and Islamic Countries and will enable the Members of AMAN UNION 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 Secretary General of AMAN UNION said, “It is expected that the decision made by DHAMAN and ICIEC to subscribe to the Database Center will encourage other ECAs in their Member Countries to join. Dr. Taha added, “We are confident that the establishment of the Database Center which is expected to be announced in November 2012 during the Annual Meeting of AMAN UNION in Kuala Lumpur will help solving the issue of reliability of credit information in our region.”

About AMAN Union
 

AMAN UNION is a professional forum of Commercial and Non-commercial Risks Insurers and Reinsurers, Brokers, Banks and Credit Information Agencies in Member Countries of the Organization of the Islamic Cooperation and the Member Countries of the Arab Investment & Export Credit Guarantee Corporation (Dhaman)

The Union was launched on 28th October, 2009 following an agreement between the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Arab Investment and Export Credit Guarantee Corporation (DHAMAN)  to form a Union of insurers and reinsurers of their respective Member Countries.  

For more information about AMAN UNION, its Charter and Members, please visit the website:  www.amanunion.net

Makati City, Philippines.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Indonesia Infrastructure Guarantee Fund (IIGF) signed a Memorandum of Understanding (MOU) during the 2012 Asia Finance and Risk Mitigation Forum in Makati City, Philippines on 30 April 2012. Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive Officer of ICIEC and Ms. Sinthya Roesly, Chief Executive Officer of IIGF signed the MOU. The MOU aims at establishing—consistent with their respective operational policies— a lasting relationship between the two entities in furtherance of their desire to co-ordinate their activities and seek mutual cooperation in promoting infrastructure investments into Indonesia.

Commenting on the importance of this agreement, Dr.Taha said, “the signing of the MOU comes within the framework of ICIEC’s mandate to support the development of its member countries by providing export credit and political risk insurance to investment projects”. He added “the two institutions will jointly work towards increasing awareness about the importance of political risk insurance for foreign investors and financiers of projects. I am confident that singing this MOU with IIGF will greatly enhance both parties’ ability to support foreign direct investments into Indonesia”

It is worth mentioning that since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now a name, which is trusted by its partners worldwide. ICIEC’s shareholders include 40 countries from the Organization of Islamic Cooperation (OIC). Its main shareholder, the Islamic Development Bank (IDB), owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody’s & Fitch). ICIEC is rated by Moody’s as Aa3 with a stable outlook on a stand-alone basis.

IIGF, on the other hand, is a fully government-owned institution established by the Government of Indonesia (GoI) as a fiscal tool mandated to provide guarantees to mitigate the private sector exposure to government-related contractual risks in infrastructure Public Private Partnership (PPP) projects. The GoI has set up the IIGF to address the need for fiscal support to accelerate Indonesia’s infrastructure development, particularly under PPP scheme.

The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of Islamic Development Bank (IDB) Group, approved in its 19th Annual Meeting, held today in Khartoum, Republic of Sudan, the Annual Report and the Financial Results for 1432H (2011).

The Annual Report shows that the insurance business provided by ICIEC to member countries’ investors and exporters stood at over US$ 3.2 billion, an increase of 59% compared to 1431H (2010),while its financial results were positive despite the increase in credit and political risks results from the continuing global financial and economic difficulties.

Commenting on these results the CEO of ICIEC, Dr. Abdel-Rahman Eltayeb Taha, said this is “ we proud that the Corporation has managed to increase its volume of business with exceptionally low claims ration and to maintain its strong financial position under such difficult circumstances. ICIEC’s strength has been underscored by the confirmation of the Aa3 rating assigned to the Corporation for the fourth consecutive year by Moody’s Investors Service”.

Dr. Taha added that they are “This growth in business was as a result of the increased awareness among exporters and banks in our member countries of the importance of credit and political risk insurance as an affective risk mitigant, especially during these turbulent times. It is also a consequence of the responsiveness of ICIEC to the demand of its clients by introducing more flexibility in its product offering, and offering new products such as the “non-Honoring of Sovereign Obligations” and “Contract Frustration Policies.

Contact:

Jamel eddine Naga
Promotion & International Relations Unit, ICIEC
Tel : +966 2 6467608
Fax : +966 2 6443447
Mobile: +966 5 68618945
E-mail : jnaga@isdb.org

ICIEC and The State Bank of Pakistan  (SBP) signed a Memorandum of Understanding (MOU) today to cooperate in promoting trade and investments in Pakistan.  Mr.Yaseen Anwar, the Governor SBP and Dr. Abdel Rahman EI-Tayeb Taha, the Chief Executive Officer of ICIEC signed the MOU. The MOU aims at establishing a basis for the exchange of  information between the two entities on banking industry's condition and operating performance indicators and ICIEC's exposures on the banks operating in the country. Headquartered in Jeddah, Saudi Arabia, ICIEC is the only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance (Takaful) services. ICIEC's risk mitigating instruments help its clients  (exporters, banks and investors)  in its member countries in expanding their business volumes in a risk and cost effective manner.

Since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now  a name  which  is trusted by its partners worldwide. ICIEC's shareholders include  40 countries from  the  Organization Islamic Cooperation (OIC). Its main shareholder, Islamic Development Bank (IDB) owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody's & Fitch). ICIEC is rated by Moody's as Aa3 with a stable outlook on a stand-alone basis.

ICIEC's operations in Pakistan among others include provision of Shariah compliant insurance coverage  to LC issuing banks in Pakistan, which aims to help them in getting their LCs confirmed at competitive prices. Confirming banks benefit from  ICIEC's services in terms of credit risk transfer and favorable risk weight treatment under the Basel II framework. ICIEC also provides export credit insurance in support of Pakistani exporters and provides political risk insurance to encourage the flow of foreign investments into Pakistan.

Before signing of the MOU, Dr. Taha called on the Governor and discussed  ICIEC's plans to further expand its operations in Pakistan. The Governor welcomed and appreciated ICIEC's interest in Pakistan and assured SBP's full support and facilitation to ICIEC for promoting trade and investment in the country.

Dr. Taha said, "The signing of the MOU comes within the framework of the role of ICIEC in supporting financial institutions in its member countries, to enable them to provide export finance to their customers". “I am confident  that singing the MOU with SBP will greatly enhance ICIEC's ability to support Pakistan's international trade, particularly with OIC member countries" He added.