The Board of Shareholders of the Arab Corporation for Investment and Export Credit Guarantee (Dhaman) held its fiftieth meeting in the presence of representatives of Arab countries and joint Arab financial institutions in the Moroccan capital, Rabat, on Saturday, April 29, 2023. The Corporation announced that the total value of trade, investment and finance insurance operations increased by 44% to about $3 billion in 2022, compared to $2.1 billion in 2021, bringing the cumulative value of insured operations from the establishment of the Foundation to the end of 2022 to about $26 billion.
The Corporation’s Board Chairman Dr. Naif Bin Abdul Rahman Al-Shammari, said that these contracts include export credit insurance contracts worth more than $2.5 billion, making up 84.6% of the total value of insurance operations, investment guarantee contracts valued at $163 million, making up 5.5%, and relative and optional reinsurance contracts worth $295 million, accounting for 9.9% of the total. These contracts have benefited investors, exporters, importers and Arab, foreign and joint banks from 47 countries, including 15 Arab ones.
In his speech delivered on his behalf by Ambassador Jamal Al-Ghanim, a member of the Corporation’s Board of Directors, Dr. Al-Shammari elaborated that based on the hike in the value of guaranteed operations, the total value of insurance premiums rose by 7.97% to more than $7.6 million, compared to their value in 2021, pointing out good returns from the Corporation’s portfolio investments in spite of the challenges experienced by the Corporation’s markets during the year, as a result of the implementation of the new strategy and procedures to achieve optimal asset distribution through the effective application of investment diversification policies in view of sectors, geography, tools and currencies.
Due to the rise in insurance revenues, the investment portfolio performance and performance improvement efforts, the Corporation maintained its positive financial performance despite the challenges, since the balance sheet as at December 31, 2022 showed an increase in the Corporation’s assets to $536.2 million, and a hike in equity to about $508.5 million, while the total revenue hit roughly $16.2 million and profits amounted to approximately $6 million, he added.
The Board Chairman noted that the Corporation managed to make many achievements during the year 2022, the most important of which come as follows:
– First: Continuing the application of governance standards by updating and developing the Corporation’s organizational structure, revising internal policies and bylaws, and setting up a number of committees affiliated to the Board of Directors only to promote decision-making in line with the best and latest practices.
– Second: Stepping up efforts to promote insurance services as four memorandums of understanding were concluded with Arab and international agencies. The Corporation also partook in dozens of activities, conferences and meetings with many Arab and international agencies with a view to strengthening cooperation, coordination and exchange of information in the Corporation’s fields of work.
– Third: Developing the Corporation’s role in the field of research and spreading awareness of the investment climate, trade and insurance industry by doubling the Corporation’s output involving reports, periodicals, studies, working papers, databases and information in the fields of economic performance, investment, trade, insurance, sovereign rating and political and commercial risk assessment, focusing on Arab countries, and expanding the scope of communication with relevant authorities using various means.
– Fourth: Activating the Corporation’s traditional and electronic media role, updating the website and activating social media accounts in a bid to highlight the Corporation’s activities so that the services provided would be widely used, and the customer base be expanded in the member states.
– Fifth: Carrying on administrative development efforts by means of streamlining and automating procedures, developing human resources, deepening the uses of information technology and keeping abreast of modern technological advancements so that the level of efficiency and effectiveness of the Corporation’s various departments would be boosted.
He explained that with the approaching of the 50th anniversary of the establishment of the Corporation in 1974, its administration looks forward to keep fulfilling the aspirations of Member States and coping with the growing and changing developments and needs of the markets, focusing on several aspects, mainly including:
– First: Implementing the Corporation’s strategy for the years 2022-2026, which embraces various aspects of work and is chiefly meant to maintain the growth of various insurance operations in the member countries, and capitalize on available additional opportunities worth $3 billion in the Corporation’s markets, particularly the main ones, by means of launching new regional offices and developing the office of the Saudi capital, Riyadh.
– Second: Maintaining the Corporation’s positive performance in the financial and investment fields so as to keep the Corporation’s business sustainability and keep pace with the plans aimed at service development and expansion at many markets.
– Third: Maintaining a high rating from Standard & Poor’s and always seeking to improve it. In March 2023, the Corporation maintained its A+ rating with a stable outlook for the second consecutive year, which reflects the strength of its financial position and its ability to meet insurance liabilities, in addition to the applied governance standards and existing management experience.
– Fourth: Promoting the Corporation’s developmental role by focusing on providing insurance services to sectors, projects and regions that largely affect growth indicators, employment, investment and export, in addition to boosting the Corporation’s efforts in the field of improving the investment and business climate and spreading awareness of its issues in the region’s countries.
He stressed that fulfilling the aspirations of Member States, through the four aspects, hinges upon a number of steps, primarily providing the necessary financial resources and completing the implementation of the decision of the Board of Shareholders adopted in April 2013 to boost the Corporation’s capital, while reaffirming the need to commit to completing the planned raise.
The Board Chairman thanked His Majesty King of Morocco Mohammed VI, the Moroccan government, the Moroccan Minister of Economy and Finance Nadia Fettah Alaoui, and other Moroccan institutions for the warm reception and hospitality during the meeting of the Corporation’s Board of Shareholders in its 50th session within the framework of the joint annual meetings of Arab financial institutions. He also thanked the head of the delegation of the Republic of Iraq for his efforts during his presidency of the Board of Shareholders at its forty-ninth session, and congratulated the head of the Palestinian delegation on having been elected as Chairman of the Board of Shareholders in its current session, and head of the delegation of the State of Qatar on having been elected as his deputy. He also thanked Mr. Abdullah Ahmad Alsabeeh, the Corporation’s Director General, and all its staff, for their keenness on doing everything just to promote the Corporation’s growth and development.
