March 8, 2022
The first meeting of the Board of Directors of the Arab Investment & Export Credit Guarantee Corporation (Dhaman) was held on Tuesday (8/03/2022) at the Corporation’s headquarters in the State of Kuwait in the presence of the Board chairman and members, as well as the director-general.
In the meeting, the Board took note of the Director General’s report on the activities of the corporation for the period between 1/09/2020 to 31/12/2021, which included three chapters: guarantee operations, complementary activities and supportive services, and the financial report.
During the reporting period, the corporation hammered out 27 new contracts, including 16 credit insurance contracts, nine confirmed letters of credit insurance contracts and two optional inbound reinsurance contracts. It also received 446 insurance applications worth a total of $ 789 million. Thus, the total value of insured commitments hit $ 944 million, up 136.3% over the same period of 2020. The corporation’s insurance benefitted companies and financial institutions from nine Arab countries and four foreign countries; topped by Kuwait (36.70%), UAE (19.62%) and Switzerland (16.92%).
Total insurance premiums, including optional and relative inbound ones, amounted to $ 2.278 million, up 46.78% over the same period of the previous year. The corporation did not pay any compensation or refund during the reporting period.
Regarding optional inbound reinsurance, an agreement was clinched with the Saudi Export and import Bank, and seven existing deals were renewed with Jordanian and Tunisian insurance authorities and the Saudi Export and Import Bank. Optional reinsurances hit $ 9.88 million. Relative inbound reinsurance amounted to USD 88.63 million during the reporting period. Existing commitments hit a total of $ 433.65 million.
The board of directors commended the results achieved by the corporation during the reporting period.
The corporation issued its third quarterly report “Investment Guarantee” under the title: The Sector of Export Credit and Finance Insurance against Political and Commercial Risks, and its fourth quarterly report entitled: The Arab Economy 2021 and Performance Expectations in 2022. It also issued four internal risk assessment publications covering 141 countries and including economic, financial and commercial indexes and Dhaman’s index for country risks. All these publications have been posted online in both Arab and English.
The corporation’s assets hit around $ 534,412,515 on December 31, 2021, compared with $ 532,919,109 on August 31, 2021. They covered investments by 61.55%, deposits by 36.91% and other assets by 1.54%. Property rights were valued at $ 508,881,026 until December 31, 2021, compared with $ 507,584,851 until August 31, 2021, up $ 1,296,175.
Total revenues until December 31, 2021, reached $ 29,807,693, compared with $ 22,385,277 in the same period of the previous year, up $ 7,422,416, mainly due to the sale of several investment funds and settlement of reinsurance companies’ obsolete balances.
In addition, net profits were estimated at $ 11,173,660) during the reporting period, compared with $ 8,882,878 in the same period of the previous year, up $ 2,290,782.
The board considered all agenda items and issued the necessary decisions and directives in their regard. The next meeting of the Board of Directors for the year 2021 is due in April following a meeting of the board of shareholders in the context of the annual joint meetings of Arab financial bodies.