The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Saudi Arabia-based Islamic Development Bank (IsDB) Group, has signed a wide-ranging Memorandum of Understanding (MoU) with Abu Dhabi Future Energy Company (Masdar) to boost the transition to renewable and clean energy in markets of mutual interest.
The MoU was signed by Mr. Oussama Kaissi, Chief Executive Officer of ICIEC, and Mr. Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during the Abu Dhabi Sustainability Week (ADSW).
Under the MoU, the two parties agree to cooperate in promoting joint action in the origination, financing, and execution of renewable energy projects through ICIEC’s insurance support in its member states. ICIEC’s mandate is to promote the flow of foreign investments among and into its member states and enlarge the scope of trade transactions between them. This includes support for transitioning to clean energy through the generation of electricity from renewable non-emitting sources and, eventually the transition to a Green Economy whilst ensuring sustainable economic growth.
“Cooperation between ICIEC and Masdar would bring about better coordination and more efficient implementation of their respective activities to the benefit of renewable energy production in the ICIEC Member States. At ICIEC, each of our insurance policies, whether the policyholder is a financial institution, specialized company, or contractor, that offers cover against political and commercial risks, can contribute to the flow of Climate Action-related investment, specialized technology and equipment or services into its Member States thereby contributing to the goals of the Paris Climate Agreement and UN SDG Agenda.”
Masdar is also mandated to develop commercially viable renewable energy projects in the Middle East & North Africa (MENA) and international markets. In December 2021, Masdar launched a global clean energy powerhouse partnership with ADNOC, Mubadala and Taqa intended to spearhead the drive to net-zero carbon by 2050.
The partnership will have a combined current, committed, and exclusive capacity of over 23 Gigawatts (GW) of renewable energy, with the expectation of reaching over 50GW total capacity by 2030. The expanded Masdar entity will become one of the largest clean energy companies of its kind and be well-positioned to lead the industry on a global scale.