The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Saudi EXIM Bank have signed reinsurance agreements during the Islamic Development Bank’s Private Sector Forum (PSF).
The agreements will help facilitate the flow of trade finance into and out of the Kingdom of Saudi Arabia.
The facultative reinsurance agreement will see ICIEC provide reinsurance to Saudi EXIM Bank coverage of confirmed documentary credits.
In addition, the agreement also encompasses documentary credits confirmed by Bank AlBilad and Arab National Bank, and will create additional capacity for Saudi EXIM Bank to support exporters and importers of essential goods and services in Saudi Arabia.
Within the agreement, ICIEC’s reinsurance will provide protection against commercial and political risks of issuing banks in the ICIEC Member States.
The combined approved limit for the reinsurance agreements is $138 million over a 12-month tenure.
Oussama Kaissi, Chief Executive Officer of ICIEC, commented: “By providing this facultative reinsurance, ICIEC gives extra confidence to banks – as well as exporters and importers – those transactions will be protected against the range of risks confronting marketing participants today.
Meanwhile, the ICIEC and UAE-headquartered, Tabarak Investment Capital, recently signed an insurance policy that will provide greater insurance cover for the export and import of Shariah-compliant goods and services. The approved limit for the policy is $100 million over a 12-month tenure.
Furthermore, back in February, the ICIEC signed a reinsurance agreement with Spanish company, CESCE.
