Jeddah headquartered Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), in coordination with multilateral development banks (MDBs), has published a study analysing the current state of the political risk and credit insurance market for equity investments and Medium and Long-Term (MLT) debt investments and other insurance solutions.
The study, commissioned by the G20 Saudi Presidency for the chair of the G20 International Financial Architecture Working Group, also identifies best practices of MDBs and specialised multilateral insurers (SMIs) related to political risk insurance as well as potential gaps in the market. The study provides recommendations on how identified gaps could be filled, particularly for low-income countries and fragile states.
ICIEC CEO, Mr Oussama Kaissi, says that “the findings of this report will shape ICIEC’s future strategic focus from one that is centred on strengthening intra-OIC economic relations to expanding our role in insuring transactions that strengthen South-South trade”.
As the only Shariah-compliant multilateral trade and investment insurer, ICIEC has a leadership role in developing trade credit and political risk insurance in the Islamic financial industry.
Building on the findings and recommendations of the study, ICIEC is working closely with the Islamic Development Bank (IsDB) Group, other MDBs, and SMIs to educate the market on the benefits of political risk insurance. ICIEC is also exploring innovative product offerings in order to fill the exposed market gaps in member countries, with the goal of achieving a more sustainable future for all.
ICIEC is a member of the IsDB Group. Established in 1994, ICIEC aims to strengthen economic relations among member countries of the Organization of the Islamic Cooperation (OIC). Its mission is to facilitate trade and investment between member countries and the world through the provision of Shariah-compliant risk mitigation tools and financial solutions.