The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Saudi Arabia-headquartered Islamic Development Bank (IsDB) Group, has signed a Memorandum of Understanding (MoU) with the Islamic Chamber of Commerce, Industry and Agriculture (ICCIA), to cooperate in promoting trade and investment.
ICCIA, which is headquartered in Karachi, Pakistan, is an International Non-Governmental Organization, is affiliated with the Organization of Islamic Cooperation (OIC), and represents the private sector of the OIC’s 57 Member Islamic States.
The MoU was signed by Mr. Oussama Kaissi, Chief Executive Officer of ICIEC, and Mr. Yousef Hasan Khalawi, Secretary-General of ICCIA, in Karachi, Pakistan.
The MoU aims to establish a framework of cooperation between the two institutions for the furtherance of their respective mandates, especially in promoting intra-OIC trade, attracting investment flows into Member States, supporting green and sustainable financing, and developing the Halal industry worldwide.
“This MoU further enhances ICIEC’s long-established playbook on supporting trade and investment in our 48 Member States. Since its launch in 1994, ICIEC has had a 28-year of experience in commencing and introducing Sharia’h-compliant risk mitigation and credit enhancement tools primarily for the promotion of intra-OIC trade and investment in projects that are deemed strategically vital for our Member States.”
The role of ICIEC in promoting trade and investment in its Member States is backed by the fact that since its inception, the Corporation has disbursed a cumulative amount of $92.1 billion in this respect. Of this figure, $72.7 billion represents credit support for trade, while $18.4 billion for covering foreign direct investments.
The OIC target for Intra-OIC trade and investment flows is 25 percent by 2025. Currently, it is around 21 percent. IsDB data shows that in 2021 the 57 OIC Member States accounted for $3.7 trillion of trade, of which exports amounted to $1,881.4 billion and imports to $1,789.6 billion, respectively. The opportunities are huge and partnerships such as this MoU can only serve to enhance intra-OIC trade and investment.