ICIEC and Al Baraka Islamic Bank Strengthen Shariah-Compliant Trade Finance through Documentary Credit Insurance Policy

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Al Baraka Islamic Bank BSC Bahrain have signed a landmark partnership to promote Shariah-compliant trade finance. The agreement aims to enhance security and confidence in the international trade ecosystem by providing insurance coverage for Letters of Credit (LCs) issued by Al Baraka Islamic Bank for import and export of eligible Shariah-compliant goods and services. This strategic collaboration is expected to mitigate payment risks associated with cross-border trade while promoting sustainable growth in ICIEC's member states.

Key Takeaways:

• The ICIEC and Al Baraka Islamic Bank BSC Bahrain have signed a Documentary Credit Insurance Policy (DCIP) to strengthen support for Shariah-compliant trade finance.
• The policy aims to provide insurance coverage for Letters of Credit (LCs) issued by Al Baraka Islamic Bank for import and export of eligible Shariah-compliant goods and services.
• The partnership is expected to enhance security and confidence in the international trade ecosystem and mitigate payment risks associated with cross-border trade.
• The ICIEC's Documentary Credit Insurance Policy serves as a vital tool for Islamic banks to expand trade finance operations with reduced exposure to commercial and political risks.
• The policy complements ICIEC's broader mandate to promote economic resilience, financial inclusion, and private sector development in member countries.
• Al Baraka Islamic Bank's CEO, Dr. Adel Salem, stated that the partnership underscores their commitment to innovation and robust risk management, empowering businesses to expand in global markets.
• ICIEC's CEO, Dr. Khalid Khalafalla, reaffirmed the institution's dedication to expanding the reach of Islamic finance, strengthening risk mitigation tools, and contributing to inclusive and sustainable economic development.

Statistics:

• 17 Jul 2025 [Saudi Press Agency] is the publication date of the announcement.
• According to the source, the ICIEC is a Shariah-based multilateral insurer and member of the Islamic Development Bank Group.
• The agreement is expected to promote sustainable growth in ICIEC's member states.

Sources:

• Saudi Press Agency (17 Jul 2025)
• ICIEC
• Al Baraka Islamic Bank BSC Bahrain