Improving the Role of Eximbanks/ECAs in the OIC Member States

transfer restriction and expropriation) risks. Products have tenors ranging from 1 –

7 years and include comprehensive short-term policy, specific transaction policy,

documentary credit insurance policy and bank master policy.

ii.

Foreign Investment Insurance Program: Through this program investment insurance

is provided for foreign investment into OIC countries against risks of exchange

transfer restriction, expropriation, war and civil disturbance and breach of contract

by governments. Products have tenors of up to 20 years and include policies on

equity investment, financing facility, guarantees and non-honoring of sovereign

obligations.

iii.

Reinsurance Program: Through this program, two types of reinsurance products are

provided to ECAs. Quota Share Treaty covers risks in trade credit insurance and has

a tenor of either less than 360 days, or between 360 – 720 days while Reinsurance

Facility Agreement covers risks of all products insured by ECAs that are compliant

with ICIEC principles and has varying tenors.

iv.

Other Services: ICIEC also provides technical assistance on investment promotion,

credit information and advisory services in collaboration with its partners.

As of 2013, ICIEC has 64 staff and is head quartered in Saudi Arabia with regional offices in UAE

and Senegal.

3.6.2

Arab Investment and Export Credit Guarantee Corporation (DHAMAN)

DHAMAN is a regional organization established in 1974 by a group of Arab countries and

financial institutions. It is headquartered in Kuwait and has a regional office in Saudi Arabia. Its

objective is to promote investments in member countries and export development in the region

by providing guarantees that protect local and foreign investment in member countries against

non-commercial and commercial risks.

In 2013, DHAMAN’s total credit risk exposure was 52.5 KD million (Kuwait Dinars – USD 187.5

million), a 50 percent increase over the previous year and the first sign of recovery since a

downward trend began in 2010. This trend is likely to be attributed to the global financial crisis

of 2008/2009, which affected credit risk exposure significantly. As of 2013, DHAMAN has a

capital base of KD 106.8 million (USD 381.4 million). DHAMAN’s shareholders include 21 Arab

governments and four Arab pan-regional and sovereign-owned funds. Member states of the Gulf

Cooperation Council hold 22 percent of shares while the funds have over 50 percent of the

shares.

Each member country elects one representative to the Shareholders Council which

serves as the main decision making body of the entity. Members may also nominate a Director-

General who will be selected the council. In 2012 DHAMAN’s received a rating of AA (stable)

from AA- in 2008 in view of its strong capitalization and good balance sheet levels. The

Supranationals Special Edition 2012. Standard and Poors.