ICIEC and ITFC Partner to Strengthen Trade

Monday, March 3rd, 2025

非洲记者报道

JEDDAH, Saudi Arabia – In a strategic move to enhance trade confidence and mitigate financial risks, the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC) and the International Islamic Trade Finance Corporation (ITFC), both entities under the Islamic Development Bank (IsDB) Group, have signed a Documentary Credit Insurance Policy (DCIP). This partnership marks a significant step in securing Letters of Credit (LC) transactions for Shariah-compliant goods and services, fostering economic resilience among member countries.

The newly introduced policy provides critical coverage for ITFC transactions, reinforcing trade confidence and ensuring smoother financial operations in global trade. By serving as a comprehensive risk management tool, the DCIP safeguards ITFC’s LC confirmation transactions, addressing the inherent risks associated with international trade. This initiative is poised to increase trade volumes across member countries, strengthening intra-OIC trade while supporting sustainable development and regional economic prosperity.

Dr. Khalid Khalafalla, Chief Executive Officer of ICIEC, emphasized the importance of this collaboration: “This policy reflects our commitment to fostering secure and efficient trade finance solutions. In partnership with ITFC, we are enhancing risk management in LC transactions while promoting seamless trade flows among Shariah-compliant markets. This initiative will contribute significantly to the economic stability of our member countries.”

Nazeem Noordali, Officer-in-Charge CEO of ITFC, highlighted the broader impact of the policy: “The Documentary Credit Insurance Policy is a vital instrument in strengthening trade resilience. By mitigating risks in LC transactions, ITFC ensures a secure trading environment that promotes economic stability and sustainable development. Our partnership with ICIEC will empower businesses and financial institutions to expand trade activities with confidence, fostering growth and prosperity across member nations.”

The policy aligns with the overarching goal of bolstering economic ties within the Organization of Islamic Cooperation (OIC) and facilitating international trade. Through this initiative, ITFC and ICIEC are working towards a more robust, interconnected global trade network where financial risks are effectively managed, and businesses can operate with greater security and efficiency.