ICIEC Newsletter

September 2023

Message from the CEO

Development is a complex and costly process – both in terms of policy making  , prioritising scarce resource allocation  , capacity building  , economic, social and human costs  , and attracting financial flows, including private capital, on equitable and just terms and conditions.

Implicit in our mandate as the only Shariah-compliant multilateral credit and investment insurer in the world, is the responsibility of on-going efforts to lift people in our 49 member states out of poverty, leaving no-one behind and fostering a sense of hope and inclusion in their respective socio-economic agendas in a world of multiple uncertainties and challenges.

Given the disparate nature of our member states’ economies, what works for one economy may not work for another. As such, it is important to continually examine development across the full spectrum of policy and financing metrics. Post-COVID-19 pandemic, especially due to the necessary adoption of social distancing and lockdown measures to contain the spread of the coronavirus, the standout takeaway has been the rise of digitalisation in trade, business, banking and financing, insurance, e-commerce, vital sectors such as agricultural and food security, climate action, FinTech, Blockchain – in fact across the whole spectrum of human activity and societal norms.

In the last three years, technology and digitalisation have been the supreme disruptors in almost all sectors of the economy with breathtaking advances, including Generative AI in science, medicine, the energy sector, infrastructure, mining, logistics and transport, food security and agri-business, trade and commerce and in leisure and hospitality – the list is endless. It is enough that our member states have, in many respects, been seemingly left behind in several development metrics – in recent years in access to affordable vaccines, food and fuel supplies, in FDI inflows, attracting private capital and equitable global trade and investment terms.

In digitalisation, with its instant access and global reach, there is renewed hope that the imbalances in the post Bretton Woods dispensation can be addressed, especially for low-and-medium-income-countries (LMICs), which form most of ICIEC member states. But it remains a work in progress which will need to be nurtured carefully given the motley of risks, including cybersecurity, online fraud and scams etc. That is why proactive digitalisation must be embraced as a core component of any new development agenda, which multilateral institutions must prioritise beyond their usual playbook. ICIEC has done so in its strategy, which puts digitalisation at par with its other development aims, such as food security, energy transition, climate adaptation and mitigation, gender and diversity empowerment, and poverty alleviation.

In this Third Quarterly Newsletter in 2023, we are precisely taking a more in-depth look at digitalisation in the development agenda and in our engagement with member states and partners. Our focus includes two Insight articles looking at different aspects of digitalisation in the global landscape and in our member states. Our Member State Profile focuses on the UAE’s remarkable digitalisation progress. We have an exclusive in-depth interview with Maher Salman, Team Lead Agricultural Water Management, Food and Agriculture Organization (FAO) and our regular Meet the Team, where Mohamad El Sayed, Manager, IT Management Division at ICIEC, discusses embracing Zero-Trust Cybersecurity to protecting and enhancing the resilience of the modern organization. This is followed by our regular Business Update and Project Highlights, and News and Events about the industry in the Quarter.

Sincerely,

Oussama Kaissi

Chief Executive Officer, ICIEC

News & Events

Istanbul, Türkiye – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) teamed up with the IsDB’s Cooperation and Capacity Development (CCD) Department, and the IsDB Regional Hub in Istanbul, Türkiye, to organize a ground-breaking three-day immersive Workshop between 26-28 September 2023 to explore the pivotal role of information sharing and business intelligence in supporting trade and investment decisions in the member states of the Organization of Islamic Cooperation (OIC).

Read more here

Jeddah, Saudi Arabia – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) was honoured with a prestigious global award from the Global Brand Magazine as the “Leading Digital Economic Transformation Initiative” for its ground-breaking initiative for establishing the OIC Business Intelligence Centre (OBIC).

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Jeddah, Saudi Arabia – In a significant move to foster bilateral collaboration and bolster trade and investment flows, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a Memorandum of Understanding (MoU) with the Saudi Pak Industrial and Agriculture Investment Company Limited (SAPICO) on 27 August 2023.

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Jeddah /Tashkent – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a Memorandum of Understanding (MoU) with the State Assets Management Agency of the Republic of Uzbekistan (UzSAMA) aimed at boosting trade and investment facilitation in the country.

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Jeddah/Dakar –  The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which has a long-standing export credit and investment insurance involvement in Senegal, launched a Special Focus Book in July 2023 titled, “Senegal and ICIEC – Empowering Real Economy, Driving Development Impact,” offering a unique insight into the successful collaboration between ICIEC and Senegal.

Read more here

Insights

Export Credit and Investment Insurance in an Accelerating Global Digital Ecosystem

International Trade and Digital Challenges

The Nourishing Role of Digitalisation in Nurturing Resilient Food Security and Systems, Agriculture and Water Management

Navigating the Future: The UAE’s Digitalization and Technology Adoption Strategy Unveiled

ICIEC Meet the Team – Mohamad El Sayed, Manager, Information Technology Management Division, ICIEC

Project Highlights

Financing the Purchase of Food Commodities in favour of the General Authority for Supply Commodities (GASC)

ICIEC signed a US$210 million Bank Master Policy (BMP) in favour of banks participating in the syndication of the Islamic Trade Finance Corporation (ITFC), the trade finance arm of the Islamic Development Bank (IsDB) and a sister entity of ICIEC in the IsDB Group.

Under the 2-year facility signed in October 2023, Banks participating in the ITFC syndication were seeking insurance cover of the Non-Honouring of Sovereign Financial Obligation (NHSFO) of the Government of Egypt, to cover a Murabaha Syndicated Facility in which ITFC acted as Lead Arranger, and Agent. The syndicated facility is a collaborative effort among a consortium of banks aimed at financing the purchase of food commodities for the General Authority for Supply Commodities (GASC).

Notably, this facility benefits from a guarantee provided by the Ministry of Finance of Egypt. As part of this arrangement, ICIEC’s policy will play a crucial role in mitigating non-payment risks associated with the Government of Egypt due to both commercial and geopolitical factors. This underscores ICIEC’s commitment to facilitating and safeguarding trade and economic activities in the region.

The development impact and expected results of the ICIEC facility, which align with the UN SDGs 1,2,8,11 and 17, are implicit.

ICIEC’s support to import strategically important essential commodities will help the country address the challenges related to food security. Importing food can help to strengthen Egypt’s relationships with other countries. This can lead to increased trade and investment, which can benefit both Egypt and the countries that it imports food from. That assists in meeting the UN SDG Number 17 – Partnerships for the Goals.

Importing food commodities can help to reduce Egypt’s reliance on its own resources, such as water and land. This can help to conserve these resources and make them available for other uses, such as growing crops for export. That assists in meeting the UN SDG Number 12 – Responsible Consumption and Production. The transaction also supports synergy with ITFC within the context of greater collaboration and integration of IsDB Group entities.

The syndicated Murabaha Financing facility amounting to USD 210 million is in line with the objective of the Food Security Response Programme (FSRP) of IsDB Group. ICIEC pledged an amount of US$500 million for FSRP during the period (July 2022 – December 2025). Total approvals reached US$573 million, where Egypt’s share is US$100 million related to four policies with one financial institution for the purpose of importing grain and other soft commodities.

ICIEC Facilitates Growth in Bahrain’s Fisheries Sector and Advances Global Food Security Goals

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Export Bahrain recently signed a Comprehensive Short–Term Policy (CSTP) to support Al Deebel Fishes Company W.L.L.. The Al Deebel Fishes Company is considered one of the key fishing businesses in the Kingdom of Bahrain and is involved in the processing and marketing of fish and fishery products. The business turnover is expected to be further increased through ICIEC and Export Bahrain by no less than 20%.

ICIEC also signed another CSTP Policy to support another key business in Bahrain: Seafood Products – Shell Fisheries Company .W.l.l , The company has its roots in Saudi Arabia, where it started this business in the 70’s and has now risen to one of the leading frozen food and seafood distributors.

ICIEC is unwavering in its dedication to realizing the Sustainable Development Goals (SDGs) and effecting lasting developmental changes in the economies of its member states. A focal point of this commitment is the emphasis on SDG 2: Zero Hunger. ICIEC actively facilitates progress toward Zero Hunger by providing insurance for food-related transactions, thereby enhancing food security across its member states. The organization’s steadfast goal is to ensure that all citizens have access to nutritious and safe foods, underscoring its commitment to achieving Zero Hunger for people worldwide.

Since its inception, ICIEC has been a formidable advocate for food security in its member states, exemplified by its substantial support of USD 1.5 billion for agriculture and fishery products. This support has significantly contributed to improving the productivity and income of food producers, particularly those in least-developed countries. ICIEC recognizes that enhancing access to quality food is integral to sustainable development globally. Moreover, it plays a pivotal role in reducing poverty levels and fostering economic growth within the communities it serves.

ICIEC’s commitment to addressing food security challenges is further manifested in its instrumental role in establishing the Arab Africa Guarantee Fund (AAGF). Comprising three sub-funds, namely the Arab Africa Green Facility, Arab Africa Food Security Facility, and Arab Africa Health Facility, the AAGF stands as a testament to ICIEC’s proactive efforts in promoting comprehensive and sustainable solutions to critical developmental issues.

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