The IDB’s Jeddah-based country and political risk insurance affiliate has substantially raised its game. In April, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) announced a record $1.4 billion in export credit and investment insurance commitments for 2006 – up 70% on 2005. Officials told Emerging Markets that ICIEC was looking to come out of the Dakar meetings with a mandate for further expansion.
The organization has requested a capital increase from its shareholders – from $144 million to $450 million.
“ICIEC’s business volume has been increasing at a very fast rate in the last few years because of the high demand for its services in the market,” an IDB official tells Emerging Markets. “A capital increase has been requested to beef up insurance capacity to help ICIEC handle the demand coming from the existing and potential clients.”
ICIEC is also looking to expand its products base.
The official told Emerging Markets that, “the corporation is working to develop special insurance funds to meet the increasing demand for its insurance services by exporters and investors.” These funds would “be financed by desiring member countries and private sector institutions.” ICIEC has also announced plans to open its first foreign representative office – in Dubai. According to the ICIEC official, “Demand of insurance, the presence of investment banks, accessibility to the neighbouring markets and existing business opportunities, when compared to other locations, gave a competitive advantage to Dubai. The Dubai office will be open to all Gulf markets, and will serve the ICIEC’s Asian members such as Iran, Pakistan and Bangladesh.”