Al Baraka Bank Egypt has announced that it has signed two important contracts with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The total value of these contracts is USD 100 million. The agreements include The Documentary Credit Insurance Policy (DCIP) and The Bank Master Policy (BMP), both of which are meant to improve the bank’s ability to provide Islamic trade finance.
The DCIP, which is worth $50 million, is designed to strengthen Islamic trade finance by helping Al Baraka Bank’s Corporate and SME exporters with export transactions that are secured by Letters of Credit. The program gives exporters the tools they need to lower the risk of not being paid by foreign banks, which makes it easier for them to enter new markets and do more business across borders.
The BMP is anticipated to help Islamic commerce fund deals worth $50 million. It is an important step towards the growth of Islamic trade finance, expanding access for businesses and small enterprises within a Sharia-compliant framework. The signing ceremony was held between Dr. Khaled Khalfallah, CEO of ICIEC, and Mr. Ahmed Atteya, Head of Financial Institutions at Al Baraka Bank Egypt, in the presence of a group of senior international officials.
In this context, Mr. Kareem Namek, Chief Financial Markets at Al Baraka Bank Egypt, stated: “These agreements reflect Al Baraka Bank Egypt’s unwavering commitment to offering integrated, Sharia-compliant banking solutions that empower our clients to conduct international trade with greater confidence and security. The provision of such advanced insurance coverage is a cornerstone of our strategy to mitigate credit risk, expand our trade finance operations, and contribute to long-term sustainable economic growth. We firmly believe that innovation and transparency in our financial services are essential to strengthening our position as a leading Islamic Financial institution supporting both the national economy and the Islamic banking sector.”
These agreements will help Al Baraka Bank Egypt’s corporate and small business customers export more goods to more markets across the world by offering new financial solutions that encourage financial stability, attract investment, and support long-term growth.
This strategic relationship fits with Al Baraka Bank Egypt’s purpose to lead in Islamic trade finance and adds to the vital role that ICIEC plays in promoting trade and investment among the 57 member nations of the Islamic Development Bank Group. ICIEC helps development initiatives in important areas including food security, energy, transportation, and infrastructure by offering Sharia-compliant insurance solutions.