ICIEC and Al Baraka Islamic Bank Strengthen Trade Finance Support with Documentary Credit Insurance Policy

Strategic Insights -

In a collaborative effort to enhance intra-OIC trade and investment, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Al Baraka Islamic Bank BSC (Bahrain) have signed a Documentary Credit Insurance Policy (DCIP). The policy aims to mitigate payment risks associated with cross-border trade, while promoting sustainable growth in ICIEC's member states.

Key Takeaways:

  • The DCIP was signed by Dr. Khalid Khalafalla, Chief Executive Officer of ICIEC, and Dr. Adel Salem, Chief Executive Officer of Al Baraka Islamic Bank BSC Bahrain.
  • The policy will provide insurance coverage for the confirmation of Letters of Credit (LCs) issued by Al Baraka Islamic Bank in connection with the import and export of eligible Shariah-compliant goods and services.
  • The partnership will help mitigate payment risks associated with cross-border trade while promoting sustainable growth in ICIEC's member states.
  • The DCIP serves as a vital tool for Islamic banks, enhancing their ability 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.
  • Both institutions reaffirmed their shared dedication to expanding the reach of Islamic finance, strengthening risk mitigation tools, and contributing to inclusive and sustainable economic development.
  • ICIEC has insured more than USD 121 billion in trade and investment, and has maintained an "Aa3" insurance financial strength credit rating from Moody's for 17 consecutive years.
  • The partnership underscores the power of multilateral cooperation in achieving shared development goals, and demonstrates the commitment of both institutions to innovation and robust risk management.

Statistics:

  • ICIEC has insured more than USD 121 billion in trade and investment.
  • ICIEC has maintained an "Aa3" insurance financial strength credit rating from Moody's for 17 consecutive years.
  • The DCIP serves as a vital tool for Islamic banks, enhancing their ability to expand trade finance operations with reduced exposure to commercial and political risks.

Sources:

  • The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (https://ICIEC.IsDB.org)
  • Al Baraka Islamic Bank BSC Bahrain (https://www.AlBaraka.bh)
  • APO Group
  • Contify.com