ICIEC inks credit insurance policy with Al Baraka Islamic Bank

As per the deal, ICIEC will provide insurance coverage for the confirmation of Letters of Credit issued by Al Baraka Islamic Bank.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a shariah-based multilateral insurer and member of Islamic Development Bank Group, has signed a documentary credit insurance policy with Bahrain-based Al Baraka Islamic Bank.

As per the deal, ICIEC will provide insurance coverage for the confirmation of Letters of Credit (LCs) issued by Al Baraka Islamic Bank in connection with the import and export of eligible shariah-compliant goods and services, said the Corporation in a statement.

This solution will help mitigate payment risks associated with cross-border trade while promoting sustainable growth in ICIEC’s member states, it stated.

The DCIP serves as a vital tool for Islamic banks, enhancing their ability to expand trade finance operations with reduced exposure to commercial and political risks.

The policy also complements ICIEC’s broader mandate to promote economic resilience, financial inclusion, and private sector development in member countries.