EDC, ICIEC discuss mutual cooperation to provide Shariah-compliant credit insurance services to local exporters

The two organisations have agreed to offer credit insurance facilities to manufacturers, trading organisations and, service providers in the country by providing them assurance against export credit risks in overseas markets. SMEs in particular stand to benefit from such a Credit Insurance service which will free them from non-payment risks by their customers and, thereby help them enter new markets with confidence.

The meeting was attended by Engineer Saed Al Awadi, EDC Chief Executive Officer; Schuyler D'Souza, Chief Commercial Officer; Hany A. Ellatief, Credit Insurance Manager; Mohammed Feras Al Hamwi, Sales Manager; Dr. Abdel Rahman Taha, ICIEC General Manager, and Khemais El-Gazzah, ICIEC Director. The said discussion was part of the EDC's Credit Insurance project, which is currently in the final stage.

Al Awadi said:

"Since 1994, ICIEC has had long experience in facilitating export trade, and has been encouraging exports including facilitating the flow of foreign direct investments to its member countries ever since. We are aiming to capitalise on this solid experience, particularly the insurance and re-insurance systems, marketing platform and debt collection for the promotion of exports from the Emirates."

He added, "We are currently finalising our Credit Insurance project which will be provided to the local exporters to encourage them to expand their businesses and enter new markets. This new project will encompass both the conventional as well as Shariah-compliant trade credit risk insurance models and, ultimately provide the customer with a choice."

"Shariah-compliant trade credit risk insurance is where ICIEC's experience will come to the fore, be it training our staff as far as deliverables are concerned or, helping us establish protocols needed to reach the highest standards of Islamic credit insurance," he said.

The idea for the establishment of an entity to provide investment and export credit insurance for Islamic countries is the main reason for the formation of ICIEC. Through the Islamic Development Bank, ICIEC grants export credit insurance against the risk of non-payment which helps exporters to enter new markets safely.

"ICIEC does not operate competitively with local agencies but in a complementary manner, and with a well-integrated structure. Our recent meeting with them bears great significance as it paved the way for a landmark agreement signed between the two organisations as a result of which, we will collaborate to provide comprehensive Islamic trade credit risk solutions for our exporters who are presented with globalisation and competition challenges worldwide," Al Awadi concluded.

EDC and ICIEC expect to roll out their Islamic credit insurance service in the new year.