Improving the Role of Eximbanks/ECAs in the OIC Member States
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TASDEER provides both pre-shipment and post-shipment export credit insurance to protect
Qatari exporters against commercial and political risks imposed by overseas. Both instruments
cover 90% of the value of goods. Pre-shipment credit insurance protects exporters against loss
(direct or indirect), or when an order is cancelled before the goods are shipped. This facility is
particularly useful for exporters producing custom-made products that may not be resalable,
especially when production may be discontinued due to political or commercial risks. Post-
shipment credit insurance protects against the risk of an overseas buyer failing to pay for goods
received on credit and applies to transactions with repayment terms not exceeding 24 months.
In 2013, TASDEER also launched a Whole Turnover policy as well as a takaful Shariah-compliant
credit insurance.
In addition to its credit insurance offerings, TASDEER provides export development and
promotion services including developing Qatar’s export strategy for non-oil products, identifying
products and target markets, conducting market entry studies for target markets, providing
trade information about foreign markets through tools like ‘Trade Map’ and ‘Market Access Map’,
and supporting participants in international and regional trade fairs.
Since its inception, its portfolio has been growing steadily, reaching QAR 260 million (or USD
71.2 million) in 2013.
Analysis:
TASDEER got off to a fast start in 2011 and has since quickly ramped up its business activities,
introducing Whole Turnover policies and Shariah-compliant insurance in 2013. It relied on
outside expertise from an existing credit insurer to launch its new business line. This
significantly accelerated the introduction of the products into the Qatari export market and
allowed QDB to focus on its marketing and business development activities. TASDEER works
hard to understand the exporting sector – their needs and priorities.
The business model of an ECA embedded in a national development bank benefits from special
synergies, particularly in relation to customer outreach. Additional synergies with the Qatari
Ministry of Business and Trade might also be beneficial – both ways – given TASDEER’s direct
business dealings with exporters.
3.4.9 Saudi Arabia
Saudi Export Program (SEP)
Description:
The Saudi Export Program (SEP) was established in 1999 under the Saudi Fund for Development
(SFD), to promote the export sector and diversify the national economy away from fossil fuels.
To this end SEP provides financing, guarantees and insurance facilities (in Saudi Riyals or USD)
that help to increase competitiveness and mitigate risks associated with international trade
transactions which exporters may face, in particular, when entering new markets. SEP also
organizes export promotional activities such as seminars and exhibitions, and publishes
brochures providing information on national exports.