ICIEC supports investments and exports in its member countries by more than $3bn in 2012
- Saudi Arabia: Saturday, February 16 - 2013 at 16:07
- PRESS RELEASE
Under the Chairmanship of Dr. Ahmed Muhammad Ali, the President of Islamic Development Bank (IDB) Group, the Board of Directors (BOD) of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), held its 70th July 11th, 2013, in conjunction with 288th meeting of the Board of the Executive Directors of IDB at the IDB Headquarters in Jeddah.
The Annual Report showed a slight decrease in export credit and political risk insurance business (total utilization of the commitments) volumes provided to the of the Corporations' clients in member countries. During the year of 1433H (2012G), the Corporation insured exports and investments of $3,074m.
Nerveless, The registered decline was partly offset by increased demand under Foreign Investment Insurance (FII) which contributed towards 20% of the total Business Insured Volume, up from 6%, as is shown by the increase of the FII business from $327m in 2011 to $825m in 2012, representing an increase of 153%. The New Insurance Commitments experienced a sharp decline by 31% compared to 2012.
Commenting on these results, the CEO of ICIEC, Dr. Abdel-Rahman El-Tayeb Taha, said that this is "The year of 2012 was a difficult one for the export credit insurance industry world-wide, the results reflecting the global deterioration in credit and country risk environment, and the decrease in trade and investment flows worldwide as well as in ICIEC Member Countries. Nerveless, we are pleased that ICIEC well managed to sustain its Business Insured volume under such challenging conditions."
The report also showed that the Corporation paid claim amounting to $2.11m, increasing from only $11,000 last year. On this, Dr. Taha commented "The sharp rise in claims paid to the policy holders in member country on their buyers who failed to pay are due largely to the economic crisis in Euro-zone and the political and economic instability in the region". The CEO of ICEIC warns "if the situation persists, we believe more claims will be coming during the remaining three of the year".
The CEO also informed the Board members that the Corporation has been able to maintain its high credit rating of Aa3 by Moody's, for the six consecutive year, which testifies to the financial strength of the Corporation, in a challenging these turbulent times.
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