An agreement regarding the establishment of a regional office for the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) was signed by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs and HE Dr. Ahmad Mohamed Ali, President of the Islamic Development Bank (IDB). The agreement was signed during the 36th Annual IDB Board of Governors Meeting which took place on 29-30 June 2011 in Jeddah, KSA.
The move mirrored adjustments implemented in the original agreement signed between both parties in 2007, which saw the establishment of a headquarters for the ICIEC regional office in the Dubai International Financial Centre.
An ICIEC representative office was established in the Centre on May 24, 2010 in aims of promoting and providing the corporation’s services to companies, banks and businesspeople operating in the UAE, which include export and insurance credit facilities in line with Islamic Sharia principles. Furthermore, the office provides services to neighboring regions due to the strategic location that the UAE occupies in its capacity as an international financial hub.
Commenting on the agreement, HE Al Tayer emphasized that the agreement reflected the UAE’s commitment towards initiating developmental and investment projects and to implementing all possible mechanisms to enhance shared Islamic operations among IDB member states. HE added that that these operations aimed at meeting the developmental needs and requirements of Islamic states to achieve their sustainable growth and raise their standards of living.
“By establishing the regional ICIEC office, we hope to better address the economical challenges facing IDB member states by aiding small and medium enterprises and supporting initiatives to help eradicate unemployment,” HE Al Tayer said.
The main roles of the office will include finalizing contracts and agreements on behalf of the ICIEC according to the corporation’s policies, procedures and decisions. It will also be responsible for following up on the progress of IDB development operations concerning technical cooperation in the area of promoting investment in member states, in addition to organizing and participating in conferences, symposiums, workshops and training programmes pertaining to any of the IDB’s goals or scope of work.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development (IDB) Group and was established in 1994 as an international institution with full juridical personality. The corporation aims at increasing trade and investment opportunities for member states and includes a total of 40 countries. The recently held 18th Annual Meeting of the Board of Governors of the ICIEC, which took place in Jeddah, KSA, has aided in increasing the corporation’s authorized and subscribed capital from 150 million Islamic Dinars to 400 million Islamic Dinars. Furthermore, the corporation’s insurance liabilities during 2010 were recorded at 3.2 billion USD reflecting 51 percent growth compared to the previous year, due to an increased demand for ICIEC services from exporters, investors and financial institutions in the GCC.