The Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) has reported a 71 per cent increase in business in its 2007-08 financial year, bringing the total amount of business it insured during the year to US$1.47 billion.

The Saudi-based member of the Islamic Development Bank (IDB) group says the increase is due to writing more business across a range of insurance policies, including one that provides cover for letter of credit (L/C) transactions.

Top countries

According to the ICIEC's 2007-08 report, Saudi Arabia continues to be the top exporter covered by ICIEC, followed by Turkey and Bahrain.

"Major clients such as the Saudi Arabian Basic Industries Corporation, El Sewedey of Egypt, and Midal Cables of Bahrain have all contributed toward increased business volume from their respective countries," it says.

Business lines

The report stressed that all lines of business contributed to the 71 per cent increase, but the primary driver of ICIEC's growth was export credit insurance provided to exporters and banks in member countries to cover non-payment risks of buyers and banks.

Services provided by ICIEC include its L/C insurance policy, a comprehensive short-term policy, a specific transaction policy and a bank master policy.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.