The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the International Islamic Trade Finance Corporation (ITFC) recently signed a Documentary Credit Insurance Policy (DCIP) to enhance trade confidence and facilitate smoother financial operations in global trade involving Shariah compliant goods and services. This strategic cooperation between two members of the Islamic Development Bank (IsDB) Group aims to manage and mitigate risks associated with Letters of Credit (LC) transactions across OIC member countries and beyond, ultimately strengthening the economic resilience of these nations.
The DCIP will provide critical coverage for ITFC transactions, serving as a comprehensive risk management tool to safeguard LCs Confirmation transactions. By addressing inherent risks in international trade, this initiative is poised to support increased trade volumes among member countries, fostering stronger bonds and contributing to sustainable development and regional prosperity.
Dr. Khalid Khalafalla, CEO of ICIEC, emphasized the commitment to fostering secure and robust trade finance solutions through this policy, uniting efforts with ITFC to promote smoother and more reliable trade flows among Shariah compliant markets. Nazeem Noordali, Officer-in-Charge CEO of ITFC, highlighted the importance of mitigating risks associated with Letters of Credit transactions to fortify trade resilience across member countries, supporting economic stability and sustainable development.
ICIEC, as the only Islamic multilateral insurer in the world, has maintained strong credit ratings and insured over US$121 billion in trade and investment. The Corporation provides risk mitigation tools and financial solutions to promote intra-OIC trade and investments, with activities spanning various sectors such as energy, manufacturing, infrastructure, healthcare, and agriculture.
On the other hand, ITFC, a member of the IsDB Group, has provided over US$83 billion in financing to OIC member countries since its establishment in 2008. With a mission to advance trade among member countries and improve socioeconomic conditions globally, ITFC serves as a catalyst for trade development by providing trade finance access and capacity-building tools.
The collaboration between ICIEC and ITFC underscores the commitment to enhancing trade flows, promoting economic development, and driving greater prosperity for member countries. This partnership aims to strengthen trade resilience, mitigate risks, and support sustainable growth in the region.
For more information about ICIEC and ITFC, visit their respective websites at http://ICIEC.ISDB.org and ITFC@itfc-idb.org. Stay updated on their latest developments by following them on social media platforms such as Facebook, LinkedIn, Twitter, YouTube, and Instagram.
