5 days ago
ICIEC, Al Baraka Bank Sign Shariah-Compliant Trade Insurance Deal
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-compliant multilateral insurer and member of the Islamic Development Bank Group, has signed a Documentary Credit Insurance Policy (DCIP) with Al Baraka Islamic Bank BSC Bahrain. This partnership is aimed at enhancing support for Shariah-compliant trade finance by increasing security and confidence within international trade transactions. Mitigating Risk in Cross-Border Trade
Through the agreement, ICIEC will provide insurance coverage for the confirmation of Letters of Credit (LCs) issued by Al Baraka Islamic Bank. Moreover, these LCs are connected to the import and export of Shariah-compliant goods and services. The DCIP is designed to help reduce payment risks in cross-border trade while encouraging sustainable economic development across ICIEC member states.
Dr. Khalid Khalafalla, CEO of ICIEC, emphasized the strategic value of the collaboration:
'This strategic collaboration with Al Baraka Islamic Bank reflects ICIEC's commitment to advancing intra-OIC trade and investment. By supporting Shariah-compliant trade finance through our Documentary Credit Insurance Policy, we are facilitating secure trade flows while empowering Islamic banks to broaden their offerings to clients.'
Dr. Adel Salem, CEO of Al Baraka Islamic Bank BSC Bahrain, highlighted the significance for the bank and the broader economy:
'We are delighted to partner with ICIEC on this pioneering credit insurance policy, which empowers us to extend Shariah-compliant trade finance to our clients, bolster Bahrain's role as a regional hub for Islamic banking, and stimulate sustainable economic growth across member states worldwide. This collaboration underscores our commitment to innovation and robust risk management, giving the businesses we serve greater confidence to expand in global markets.' Advancing Islamic Finance, Economic Inclusion
The DCIP is an essential tool for Islamic banks, enabling them to expand trade finance activities while minimizing commercial and political risk exposure. Additionally, this policy aligns with ICIEC's broader mission to promote economic resilience, financial inclusion, and private sector growth in its member countries.
Both ICIEC and Al Baraka reaffirmed their shared commitment to advancing Islamic finance, enhancing risk mitigation solutions, and contributing to inclusive and sustainable development across the OIC member states.
Finally, this partnership marks a forward step in leveraging Shariah-compliant financial tools for global trade and economic growth.
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