The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-compliant multilateral insurer and member of the Islamic Development Bank (IsDB) Group, has signed a facultative reinsurance agreement with Takaful Libya.
The agreement, on 23 September 2025, enhances Takaful Libya’s capacity to underwrite Shariah-compliant export credit risks, thereby supporting the growth of Libyan exporters and contributing to the country’s economic recovery.
Under the arrangement, ICIEC will provide facultative reinsurance to selected export transactions insured by Takaful Libya. This will enable Takaful Libya to extend broader coverage to exporting companies and banks involved in cross-border trade, strengthening their resilience against payment risks and facilitating access to new markets.
The partnership also paves the way for technical collaboration on key areas of underwriting, credit risk assessment, capacity building, and claims management. ICIEC’s support will allow Takaful Libya to strengthen its offerings to corporates and financial institutions while reinforcing prudential requirements.
Dr Khalid Khalafalla, CEO of ICIEC, said, “By extending export credit reinsurance capacity and know-how to Takaful Libya, we will help Libyan exporters safeguard their receivables, strengthen their competitiveness in global markets, and contribute to rebuilding national trade flows in line with the development of Libyan external trade.”
Mr Bashir Ali Khallat, general manager of Takaful Libya, said, “For Libya, this agreement represents more than just a financial arrangement—it is a new avenue of opportunity, a platform to boost and promote our exports, and a stepping stone toward greater economic growth. We are confident that this partnership will be a strong pillar in supporting Libya’s development journey, and we look forward to seeing more initiatives of this kind in the future, initiatives that not only protect our economy but actively drive it forward.”
As a member of the Islamic Development Bank Group, ICIEC commenced operations in 1994 to strengthen economic relations between OIC member states and promote intra-OIC trade and investment by providing credit enhancement and risk mitigation solutions.
Takaful Libya was established in 2007 with an initial capital of LYD10m ($1.85m). In 2023, the capital was increased to LYD15m, with subscriptions made by businessmen and investors. In 2012, the company was fully transformed into a takaful insurance model, thus becoming the first takaful insurance company in Libya.