Al Baraka partners with ICIEC to back Islamic trade from Bahrain
Al Baraka Islamic Bank has signed a key policy agreement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), in a move expected to boost Shariah-compliant trade financing and mitigate risk for Bahraini exporters and investors.
The policy, signed in Bahrain, grants Al Baraka access to ICIEC's insurance tools, including credit and political risk protection. These instruments are designed to support clients engaged in cross-border trade in alignment with Islamic finance principles.
Risk-sharing tools ICIEC, a multilateral insurer affiliated with the Islamic Development Bank Group and rated Aa3 by Moody's, provides guarantees for trade and investment in Organisation of Is - lamic Cooperation (OIC) member states. By partnering with ICIEC, Al Baraka gains the ability to extend credit support to businesses with greater confidence.
'This agreement underscores our commitment to sustainable Islamic banking,' said Hamad Abdulla Al Oqab, CEO of Al Baraka Islamic Bank. 'It enhances our ability to offer secure, Shariah-compliant trade finance to our customers.'
Private sector
push The partnership targets increased access to ICIEC's comprehensive insurance policies that reduce risk exposure for local businesses trading internationally. It also aims to support Bahrain's broader economic diversification goals by making the country more attractive as a base for Islamic trade and finance.
The agreement is expected to improve the competitiveness of Bahraini enterprises operating in OIC markets, where ICIEC provides tailored coverage against credit default, political unrest, or unforeseen trade disruptions.
Bahrain gateway
The bank's leadership highlighted the role of such policies in enabling Bahrain to serve as a safe and credible Islamic banking hub. Al Baraka noted that this is part of its wider strategy to empower local businesses to expand globally without compromising on faith-based financial values.
ICIEC and Al Baraka officials expressed mutual optimism about the partnership's impact on the development of the Islamic financial services ecosystem, particularly in trade finance.
The collaboration marks a new step in integrating multilateral risk insurance into Islamic banking operations in the Kingdom.
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