The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group (IDBG), has once again demonstrated its resilience in 2017 despite a year of general volatility, with the Corporation’s total Business Insured of US$7.5 billion in its member countries. The Corporation also generated a total premium income of USD 35.39 million. The proportion of Business Insured in the Short Term line of business decreased from 79% in 2016 to 76% in 2017 as opposed to the Investment Insurance increasing from 16% in 2016 to 21% in 2017. The Medium term remained the same at 5%. The positive outcome is attributable to various economic, political and social reforms that are sweeping through the region, resulting in a much improved business environment conducive to foreign and domestic direct investments.

The Corporation’s annual report and financial statements approved by its Board of Governors during their 25th meeting in Tunis on 05 April, 2018 revealed.

On the back of the strong performance, ICIEC has maintained, for the 9th year in a row, its Aa3 by Moody’s rating, which happens to be one of the strongest in the Export Credit and Political Risk Insurance industry.

Releasing the 2017 Annual Report at the 25^th-Annual Meeting of the ICIEC Board of Governors on April 1-5, 2018 in Tunis, Mr. Oussama A. Kaissi, Chief Executive Officer of ICIEC, expressed his optimism, saying: “Going forward, and on the basis of the expertise gained over the last 23 years in this field, ICIEC will continue to work hard, allowing the Corporation to carry out its developmental agenda toward its 44 Member Countries in a sustainable manner.”

“While none of us can predict the future with absolute certainty, I believe the forward-looking policy of the Corporation states unequivocally the commitment to pursue unabashed measures that harness this opportunity to foster economic growth,” Mr. Kaissi further said.

He went on to say: “I am confident that building on its robust performance in 2017, ICIEC will continue to meet its stakeholders’ expectations and will remain well placed to play its role of a catalyst in promoting trade and foreign direct investments in our Member Countries.“

“This meeting marks a historic year for ICIEC. At a time of continued global economic and financial vulnerability, the Corporation, with the strong support from IDBG, has yet again proven its leadership in and commitment to the progress of Member Countries where it is actively present.  It has continued to bolster investor confidence, attracting new investments into areas characterized by high risk,” Mr. Kaissi remarked at the conclusion of the meeting.

In 2017, ICIEC started to pursue the full implementation of all policies and procedures as recommended and adopted by the Group Risk Management’s (GRMD) Risk Management Guidelines for Insurance Operations (including the Credit Risk Assessment Guidelines for Corporates, Financial Institutions/Banks, and Projects). These guidelines have been modified to suit ICIEC’s specific needs and were approved by the Board.

Moreover, intra-trade among OIC Member Countries covered by ICIEC during 2017 reached USD3.18 billion, representing exports from 17 OIC Member Countries to 38 other OIC Member Countries, which is equivalent to 54% of trade credit insured by ICIEC during the year. The intra-trade and intra-investments among OIC Member Countries, which ICIEC facilitates, has been growing, on average, by 35% per annum over the last five years. It jumped from USD 1.3 billion in 2013 to USD 4 billion in 2017.

During the ICIEC’S High Level Panel Discussion (HLPD) titled “Beyond the Risk Perception: Strategic Alliances between Export Credit Agencies (ECAs) and Multilateral Development Banks (MDBs) to facilitate International Trade and Investment Flows”, existing opportunities and challenges that affect negatively the overall investment climate, deteriorate perceptions of investors and traders were identified, cognizant of the role of governments, MDBs, ECAs and private sector business partners in enhancing the intra-OIC trade and investment.

The meeting winded up with the Board of Governors also appointing new external financial auditors for 2019.