Thursday 27, September 2018 by Jessica Combes

Shari’ah-compliant export credit gets boost under new agreement

 

Etihad Credit Insurance has signed an MoU with the Islamic Corporation for the Insurance of Investment and Export Credit to boost export trade through the promotion of Shari’ah-compliant export credit and investment insurance instruments.

Etihad Credit Insurance (ECI), the UAE Federal export credit company, has signed a Memorandum of Understanding (MoU) with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group, to boost export trade through the promotion of Shariah-compliant export credit and investment insurance instruments.

With the aim of establishing a long-lasting relationship for cooperation in trade credit insurance, as well as exchange of information and knowledge between ECI and ICIEC, the MoU will support the UAE’s trade and export industry and, likewise, serve as a means for seeking mutual cooperation in promoting Halal industry worldwide.

 “The MoU reflects the close co-operation between ECI and ICIEC in supporting small and medium enterprises operating in the United Arab Emirates, encouraging them to export and providing solutions to meet the funding problems. Under the memorandum, ICIEC will provide reinsurance capacity and Shariah compliant export credit insurance solutions aimed at promoting the UAE’s non-oil exports, trade and strategic sectors development. It will be instrumental to advance and sustain UAE’s national economic non-oil diversification programmes, as well as support the export and re-export of UAE goods, services, and the foreign investments of the UAE businesses, by providing a range of export credit, financing and investment insurance products,” said Massimo Falcioni, Chief Executive Officer of ECI.

 Kaissi added that the signing of this MoU comes within the framework of ICIEC’s mandate to support the development of its member countries by providing export credit and political risk insurance for trade and investment projects. This collaboration will enable ECI and ICIEC to further strengthen the facilitation of trade and investment between member countries and the world, through Shari’ah-compliant risk mitigation tools.

The ICIEC, the insurance arm of the Islamic Development Bank (IDB) Group, was established in 1994 with a mandate to promote exports from, and foreign investment into, its Islamic member countries by providing and encouraging the use of Shariah-compatible export credit and investment insurance as credit and country risk mitigation instruments.

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