Member of the Islamic Development Bank Group

Member of the Islamic Development Bank Group

Contents The Islamic Development Bank Group (IDBG). ICIEC At a Glance. ICIEC's Member Countries and Shareholding. ICIEC's Trade & Investment Insurance Solutions. ICIEC's Performance Highlight. ICIEC's Sample of Underwritten Projects. ICIEC S History in Milestones. 04 05 08 09 10 12 15

The need for more sophisticated instruments, beyond financing, for the facilitation of trade and investments, was becoming ever more necessary. In that context, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) plays the dual role of providing credit and political risk insurance as well as help support the national export credit agencies (ECAs). As in any journey in life, we faced many challenges and obstacles. The most daunting of which was the lack of awareness among the business communities in our member countries of risk mitigation tools and their critical role in oiling the machinery of international trade and investment. Against all odds, we succeeded in putting into place a strong institutional infrastructure: an innovative product suite, organizational processes, procedures and regulations, a multiskilled and diverse professional staff, and a state-of-the-art in-housebuilt insurance management system. We have also created a network of reinsurance support from the private market, ECAs and multilateral institutions. Based on this strong foundation, we have achieved (on a standalone basis) and maintained over the past ten years an Aa3 rating from Moody s, which is one of the strongest in the rating industry. In addition, over the years we have developed extensive and mutually beneficial relations with the international credit and political risk insurance industry. Through its unique Sharia-compliant products and services, and its collaboration with a vibrant and active private sector, ICIEC successfully continued to facilitate the expansion of trade and investment flows among member countries of the Organization of Islamic Cooperation (OIC) and the rest of the world. Along the way, we have been able to support thousands of exporters in our member countries to venture into new markets. We have also worked with individual and corporate investors as well as financiers of projects in member countries. Since inception, ICIEC has insured a volume of business of US$ 36,252 million in trade transactions and US$ 7,505 million in foreign direct investments. The gross premium has registered a record of US$ 232 million. ICIEC is a full member of the Berne Union, the association of the major private, public and multilateral export credit and political risk insurance companies in the world, which brings together 82 providers of political and credit insurance solutions to businesses across the globe. Additionally, ICIEC is a co-founder (along with Dhaman) of the AMAN UNION, which is a forum for Muslim and Arab countries export credit agencies. Having said that, however, I am confident that the future holds achievements that are even more exciting for the Corporation. Oussama Abdul Rahman Kaissi Chief Executive Officer, ICIEC The Islamic Development Bank (IDB) 3

The Islamic Development Bank Group (IDBG) Established in 1975 to foster socio-economic development in member countries and Muslim communities in compliance with Shariah. IDB Vision Shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim World and help restore its dignity. IDB Mission Promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, promoting education, improving governance and prospering the people. Authorized Capital of US$ billion 140 Paid-up Capital of US$6.7 billion IDB Group Islamic Development Bank (AAA Rated) Subscribed Capital of US$70 billion The Islamic Corporation for the Insurance of Investment and Export Credit Provides political and commercial risk insurance and reinsurance solutions. Islamic Research & Training Institute Provides training, research, advisory and capacity building for development of the Islamic Financial Service Industry (IFSI). Islamic Corporation for the Development of the Private Sector Provides project finance solutions to develop the private sector in member countries. International Islamic Trade Finance Corporation Provides financing and capacity building to encourage intratrade across OIC member countries. The Islamic Development Bank (IDB) 4

ICIEC at a glance... ICIEC is a Unique International Financial Institution Owned by AAA Rated Islamic Development Bank and 44 member countries which are members of the Organization of Islamic Cooperation. Our Mission To make trade and investment between member countries and the world secure through Shariah compliant risk mitigation tools. Established in 1994 in Jeddah Saudi Arabia as a multilateral institution and member of the Islamic Development Bank Group. Authorized Capital **Islamic Dinar (ID) 400 million (equivalent to US$ 568 million) (1 ID=US$1.42). Rated Aa3 By Moody s with stable outlook. Pioneer of Shariah Compliant Export credit and investment insurance and reinsurance solutions. Member in Berne Union The leading association for export credit and investment insurance players worldwide. Cofounder of *AMAN UNION The Association of the Islamic & Arab Export Credit Agencies. Our Vision To be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries. ICIEC Strategy To enhance economic development in member countries and ensure financial sustainability. To be the preferred enabler of economic and social development in member countries, using trade credit and investment insurance solutions as a tool. *The Aman Union is a professional forum assembling Commercial & Non-commercial Risks Insurers & Reinsurers in Member Countries of the Organization of the Islamic Cooperation and of the Arab Investment & Export Credit Guarantee Corporation (DHAMAN). **(As of end of December 2017). ICIEC at a glance 5

ICIEC at a glance... ICIEC Mandate is to Expand Commercial Transactions and Encourage Investment Flows into OIC Member Countries ICIEC meets its mandate requirements by providing risk mitigation solutions to member countries exporters selling to buyers across the world, and to investors from across the world investing in ICIEC s member countries. ICIEC s mandate is to promote cross-border trade and foreign direct investments (FDI) for its member countries. Credit Insurance Facilitate exports of member countries to the rest of the world. Facilitate the import of strategic and capital goods by member countries from non-member countries. On a limited basis, ICIEC can also support international exporters selling to ICIEC s member countries, if the sales are capital goods or strategic commodities. Investment Insurance Facilitate the flow of foreign direct investment into member countries. ICIEC at a glance 6

ICIEC at a glance... Board of Governors Board of Directors Chairman of the Board of Directors, President of IDB Group CEO Ministers of Finance / Central Bank Governors Representing 44 Member Countries Shariah Committee Audit Committee IDB Group Management Committee Group Internal Audit Dept. ICIEC Management Committee Technical Underwriting Committee Group Risk Mgmt Dept. Risk Management Committee ICIEC has a Strong Corporate Governance Structure Group Strategic Planning Dept. Group Ombudsman Group Integrity Officer Claims Committee Investment Committee Country Risk Review Committee ICIEC at a glance 7

ICIEC member countries and shareholding ICIEC Supports Trade & Investment Flows in 44 Member Countries Central Asia & Europe Albania, Kazakhstan, Turkey Southeast Asia Bangladesh, Brunei, Indonesia, Iran, Malaysia, Pakistan IDB ICIEC Shareholding (as on December 2017) Saudi Arabia Arab Asian Countries Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, UAE, Yemen 52% 21% 13% Iran 3.47% Kuwait 2.60% UAE 2.60% Egypt 2.33% Kazakhstan 2.26% East & Central Africa Cameron, Chad, Comores, Djibouti, Gabon, Mozambique, Uganda North Africa Algeria, Egypt, Libya, Mauritania, Morocco, Sudan, Tunisia West Africa Benin, Burkina Faso, Côte d'ivoire, Gambia, Guinea, Mali, Niger, Nigeria, Senegal 14% Morocco 1.74% Qatar 1.74% Turkey 1.74% Bahrain 1.26% Malaysia 0.95% Pakistan 0.87% Nigeria 0.76% Libya 0.52% Algeria 0.35% Tunisia 0.35% Yemen 0.35% Sudan 0.26% Burkina Faso 0.24% Bangladesh 0.17% Gambia 0.17% Indonesia 0.17% Jordan 0.17% Lebanon 0.17% Oman 0.17% Albania 0.09% Benin 0.09% Brunei 0.09% Chad 0.09% Cote D Ivoire 0.09% Djibouti 0.09% Gabon 0.09% Guinea 0.09% Iraq 0.09% Mali 0.09% Mauritania 0.09% Mozambique 0.09% Niger 0.09% Palestine 0.09% Senegal 0.09% Syria 0.09% Uganda 0.09% Comoros 0.09% ICIEC member countries and shareholding 8

ICIEC trade & investment insurance solutions ICIEC is the only multilateral export credit and investment insurance Corporation in the world that provides Shariah-Compliant insurance and reinsurance solutions Credit Insurance solutions Insurance of confirmed Letters of Credit Banks & Financial Institutions Investments Insurance solutions Non-Honoring of Sovereign Financial Obligations Credit Insurance solutions Insurance of Supplier Credit Corporates Investments Insurance solutions Political Risk Insurance for Equity investments/ Projects Export Credit Agencies (ECAs)/ Insurers Export Credit andinvestment Reinsurance Reinsurance/ Co-insurance Fronting Managing the Policyholder's Fund Policyholder's Fund SURPLUS Takaful Operations Underwriting Cost and Expenses Contributions INTEREST FREE LOAN REPAYMENT OF LOAN Compensation Managing the Shareholder's Fund by Investing the capital Shareholder's Fund Buyer Credit Insurance Political Risk Insurance of Cross-Border Loans Policyholder Shareholder In addition to its core business, ICIEC offers technical assistance to ECAs ICIEC trade & investment insurance solutions 9

ICIEC s Performance Highlights ICIEC Aggregate Business Insured for the last 5 Years reached US$29 billion West Europe East and Central Asia 70% 27% 9,000 US$ Millions 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1,033 106 2,387 804 368 3,668 858 216 4,097 1,242 413 6,363 1,593 341 5,593 North Africa 1% Sub-Saharan Africa 1% West Asia 1% - 2013 2014 2015 2016 2017 ST MT FII ICIEC Paid US$18 million in Claims during the last 5 years ICIEC performance highlight 10

ICIEC performance highlight ICIEC s Support for the Development of Manufacturing Projects during the last 5 Years TRADE US$ 413 million CONSTRUCTION US$ 1.1 billion OTHERS US$ 1.5 billion MANUFACTURING US$ 10.9 billion ENERGY US$ 9.9 billion AGRICULTURE US$ 2 billion SERVICES US$ 3.3 billion the Aa3 rating from Moody s is indicative of the level of confidence placed in ICIEC s risk management environment ICIEC performance highlight 11

ICIEC s Sample of Underwritten Projects Banks ICIEC Support for the Agriculture Sector in Sudan Insurance Policy EUR 199.5 million Cover against expropriation risk Crops assigned to PTA for export Murabaha Facility EUR 266 million Salam facility tofarmers Farmers reply in kind (sesame and sorghum) 1. Insured: PTA Bank 2. Risk covered: expropriation 3. Insurance duration: up to 2 years 4. Percentage of cover: 95 % 5. ICIEC covered amount: EUR199.5 million 6. Development impact: supporting the expansion of agriculture production and improve farmers welfare. ICIEC sample of underwritten projects 12

ICIEC s Sample of Underwritten Projects Corporates ICIEC s Support for the Energy Sector in Mali Power Purchase Agreement Engineering Procurement Construction (EPC) Contract 1. Project: Engineering, Procurement and Construction of a power plant 2. Risk Covered: Political 3. Insurance Duration: 18 months 4. Percentage of Cover: 90% 5. Development Impact: Support a member country to improve energy supply/security. Specific Transaction Policy (Contract Frustration) ICIEC sample of underwritten projects 13

ICIEC s Sample of Underwritten Projects ECAs ICIEC s Support for the Infrastructure Project in Egypt Parallel Insurance (high level cooperation agreement) Reinsurance agreement of 33.33% of Max. Liability US$ 215 mn Consortium including: Boskalis International -BV (NL), Jan de Nul Dredging NV (Be), Van Oord Middle East Ltd (Cy), NMDC (UE) (Each share of %25 of contract value) Contract value: US$ 1,3 bn 1. Project: New Suez Canal 2. Risks Covered: political and commercial 3. Insurance Duration: cash contract payable 14 days after submission of bi-weekly progress statement 4. Percentage of Cover : 98% (political), 95% (commercial) 5. ICIEC covered Amount: US$ 215 mn 6. Development Impact: To increase the capacity of the Suez Canal To transform the Canal area into a transport and industrial hub. ICIEC sample of underwritten projects 14

ICIEC s History in Milestones At the time of inception of ICIEC, trade finance in the region was quite traditional The Board of Governors approves the Article of Agreement for the establishment of Islamic Cooperation for the Insurance of Investment and Export Credit (ICIEC) at Its 6 th Annual Meeting held In Tripoli, Libya, In Sha ban 1412H (February 1992). ICIEC officially commences business on 22 nd Muharram 1416H (1 July 1995) after the appointment of its inaugural Manager and senior professional officers. ICIEC launches its Foreign Investment Insurance (FII) Policy, a product that looks several years to develop. ICIEC joins the Coface Credit Alliance because of the need to get reliable credit information and benefit from the experience of Coface (the French export credit agency) and its partners. 1991 1994 1997 2000 1992 1995 1998 2000 COMCEC finalises The Founding Agreement Draft for the proposed Export Credit Insurance and Investment Warranty Corporation at its 7 th Meeting held in Istanbul 6-9 October. on 23 rd Safar 1415H (1 st August 1994) ICIEC was established as a multilateral export credit and investment insurance entity, with initial membership of 18 countries and with an authorised capital of ID 100 million (about US$140 million). ICIEC starts its operations with three products, namely, the comprehensive short term policy (CSTP), the Bank Master Policy (BMP), and the Supplementary Medium Term Policy (SMTP), which were introduced in the first few years. The Board of Governors amends the Articles of Agreement allowing ICIEC to cover exports to any destination in the world. ICIEC S history in milestones 15

ICIEC s History in Milestones ICIEC launches the Documentary Credit Insurance Policy (DCIP). ICIEC signs its first Reinsurance Treaty with Atradius, the Dutch state -owned ECA. the IDB group Investment Promotion Technical Assistance Program (ITAP) was launched. The program is managed by ICIEC. Moody s Investors Service assigns ICIEC an Aa3 Insurer Financial Strength rating. This rating has been consecutive years. 2001 2004 2005 2006 2003 2004 2005 2007 The first foreign Investment Insurance (FII) Policy is underwritten. The position of the ICIEC s Manager is changed to General Manager and the ex-officio President of ICIEC Dr. Ahmed Mohamed Ali, Who is also the president of the IDB Group, delegates some of his authorities to the General Manager, who effectively manages the Corporation on a day-to-day basis. the Board of Governors amends the Articles of Agreement allowing ICIEC to provide political risk insurance (PRI) to cover investors from nonmember countries investing into member countries. ICIEC introduced the Specific Transaction Policy and the Re-Insurance Facility Agreement, which prove to be very popular to clients for the first time, Business Insured Surpasses the US$1 billion mark to reach US$1,462 million. ICIEC S history in milestones 16

ICIEC s History in Milestones Following a restructuring in 2008 the position of the General Manager of ICIEC is changed to Chief Executive Officer who is endowed with the full authority to manage the business of the Corporation. The ex-officio President becomes the Chairman of the Board of Directors. ICIEC and the Arab Investment and Export Guarantee Corporation (Dhaman), which is the multilateral ECA set up by Arab states to promote investments and trade together with other ECAs such as the Exim Bank Malaysia and Exim Bank of Turkey launch the AMAN Union (the grouping of ECAs in Islamic and Arab Countries) which has broadly similar objectives to those of the Berne Union. The board of governors increase the authorised Capital of ICIEC to ID 50 million (US$ 240 million) Business Insured surpasses the US$ 3 bilion mark to reach US$3,242 million-up from the US$1.98 billion from the previous year. The Board of Governors increase the Authorised Capital of ICIEC to ID400 million (US$613 million) IDB Subscribed Capital reaches ID231.5 million (US$354.5 million), of which ID110.86 million (US$ 169.81 million) is paid up. 2008 2009 2009/10 2010 2008 2009 2010 2012 ICIEC accedes as a Full Member of the Berne Union, an association of ECAs primarily from the Organisation of Economic Cooperation and Development (OECD). ICIEC joins the Prague Club, which is part of the Berne Union membership that comprises primarily of ECAs from developing countries, and is an excellent platform for exchange of information and knowledge sharing. The ICIEC s Representative Office in Dubai is registered with Dubai international Finance Centre (DIFC) and becomes operational. it plays a major role in promoting ICIEC s services in UAE and neighbouring countries and in sourcing medium-term and foreign investment business. The Board of Governors amends the Articles of Agreement to cover domestic sales ( as long as they are part of an exporter s portfolio of sales) and imports ( primarily strategic goods such as food and capital goods) form non-member countries. ICIEC S history in milestones 17

ICIEC s History in Milestones ICIEC includes Master Facultive Reinsurance Agreement with Ducroire SA, the Belgium ECA and a leading European credit insurance provider, to cover larger, longer-term transactions, which the Corporation may not be able to accommodate on its own books. Moody s Investors Service reaffirms ICIEC s Aa3 Insurer Financial Strength ratingv The ICIEC IT team completes IMS remote access, allowing its staff, clients and the public, access to operations information via IMS and web portal. ICIEC lunches the innovative Sovereign Sukuk Insurance Policy. Mr Oussama Abdul Rahman Kaissi appointed as the Chief Executive Officer of ICIEC. ICIEC maintained the Aa3 rating for the tenth consecutive year. 2013 2013 2014 2016 2013 2013 2015 2017 ICIEC concludes a Reinsurance Agreement with Atradius, the state-owned Dutch credit insurer, to support short-term cross-border transactions involving capital goods and infrastructure projects. AMMAN UNION launches its Database Centre (DBC) with initial subscribers of 10 countries ECAs this project consists of a data pool to share black-listed buyers, access existing credit reports in the database, order and purchase credit reports and opinion on new buyers located anywhere in the world from 18 International credit information suppliers. ICIEC s membership reaches 42, comprising 18 Arab countries, 15 African countries and 9 Asian and other countries. Dr. Bandar Hajjar, elected as the new President of IDB Group. ICIEC S history in milestones 18

Contact Information ICIEC Headquarters ICIEC Representative Office in Dubai 8111 King Khalid St. Al Nuzlah Yamania Dist. Unit No. 1 P.O. Box 15722 Jeddah 21454 Kingdom of Saudi Arabia Tel.: (+966) 12 644 5666 Fax: (+966) 12 637 9755 Office 1501, Sobha Sapphire Al Khaleej Al Tejari Street 2, Business Bay P.O. Box: 114462 Dubai, UAE Tel.: (+971) 42776255 / 42776257 / 42776256 ICIEC Representative in Africa, IDB Group Regional Office ICIEC Representative in Turkey & CIS Countries 18 Boulevard de Republique, P.O. Box: 6253 Dakar Etoile Senegal Tel.: (+221) 338891144 - Ext: 7735 IDB Group Country Gateway Office NO: 1, Kat: 31 Daire: 122 Maslak, Sariyer, Istanbul-Turkey Tel.: (+90) 212 234 8100 5556

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