The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has announced deals worth over US$700mn to support Islamic trade finance and development.
The bulk of the deals are insurance cover provided to Standard Chartered and other banks for lending in Sub-Saharan Africa.
The largest agreement is the provision of insurance cover for a €250mn financing package arranged by Standard Chartered and provided by the bank’s Hong Kong and Kenya divisions, as well as DZ Bank.
The funds are disbursed to Trade and Development Bank (TDB) to support infrastructure, energy and trade finance initiatives in Comoros, Djibouti, Egypt, Mozambique, Senegal and Uganda.
“Such [a] facility empowers TDB to accelerate infrastructure, energy and trade projects that will light homes, connect markets and create dignified jobs across six of our common member states,” says Khalid Khalafalla, ICIEC’s chief executive. “It is a clear demonstration of how Islamic finance can mobilise private resources for inclusive, sustainable growth.”
ICIEC also signed two separate deals worth US$50mn each with Al Baraka Bank Egypt: one is a bank master policy supporting Islamic trade finance and the other is a documentary credit insurance policy supporting export transactions backed by letters of credit.
ICIEC says these deals will help the bank enlarge its letter of credit confirmation business and expand into new markets.
In addition, ICIEC announced partnerships with two export credit agencies (ECAs): a renewal of a reinsurance alliance with Algeria’s Cagex for the 2025 underwriting year and a memorandum of understanding with the Nigerian Export-Import Bank, aiming to “promote financial and trade relations while driving economic growth across ICIEC’s member states and beyond”.
It has also signed a memorandum of understanding with insurer Credendo, establishing a framework that will develop “new risk-sharing schemes” to enable larger trade transactions for multinational corporations operating in ICIEC member states.
ICIEC insured US$13bn in business in 2024, bringing its total insured to US$121bn since its inception in 1994, according to its annual report, published on May 25. The figure was slightly less than in 2023, when the organisation insured US$13.3bn of business.
“Insuring US$13bn in business last year and achieving a seventh consecutive year of technical surplus reflects our strong ability to navigate complex markets and deliver tangible value,” says Khalafalla. “Looking ahead, we remain committed to expanding our capacity to de-risk trade and investment, driving sustainable growth across our member countries.”
