The IDBs Jeddah-based country and political
risk insurance affiliate has substantially raised its game. In
April, the Islamic Corporation for the Insurance of Investment
and Export Credit (ICIEC) announced a record $1.4 billion in
export credit and investment insurance commitments for 2006
up 70% on 2005. Officials told Emerging
that ICIEC was looking to come out of the Dakar
meetings with a mandate for further expansion.
The organization has requested a capital increase from its
shareholders from $144 million to $450 million.
ICIECs business volume has been increasing at a
very fast rate in the last few years because of the high demand
for its services in the market, an IDB official tells
Emerging Markets. A capital increase has been requested
to beef up insurance capacity to help ICIEC handle the demand
coming from the existing and potential clients.
ICIEC is also looking to expand its products base.
The official told Emerging Markets
corporation is working to develop special insurance funds to
meet the increasing demand for its insurance services by
exporters and investors. These funds would be
financed by desiring member countries and private sector
institutions. ICIEC has also announced plans to open its
first foreign representative office in Dubai. According
to the ICIEC official, Demand of insurance, the presence
of investment banks, accessibility to the neighbouring markets
and existing business opportunities, when compared to other
locations, gave a competitive advantage to Dubai. The Dubai
office will be open to all Gulf markets, and will serve the
ICIECs Asian members such as Iran, Pakistan and