Al Baraka Bank Egypt signs US$100m with ICIEC to facilitate trade finance

Al Baraka Bank Egypt has finalised two significant agreements with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), amounting to a total of US$100m. These agreements, namely the Documentary Credit Insurance Policy (DCIP) and the Bank Master Policy (BMP), aim to enhance the bank’s Islamic trade finance capabilities.

The DCIP, valued at US$50m, is structured to support export operations facilitated through Letters of Credit, specifically benefiting the bank’s corporate and SME exporters. This policy introduces targeted risk-mitigation instruments designed to minimise the risk of non-payment by foreign banks. By de-risking international transactions, it empowers exporters to broaden their market reach and elevate their cross-border trade activities.

Simultaneously, the BMP, also valued at US$50m, will bolster Islamic trade finance transactions. This policy represents a strategic advancement in the development of Islamic finance, particularly in reinforcing its capacity to support corporate and SME sectors.

The agreements were formally signed during a ceremony attended by Dr. Khaled Khalfallah, CEO of ICIEC, and Mr. Ahmed Atteya, Head of Financial Institutions at Al Baraka Bank Egypt, alongside senior international delegates.

During the event, Mr. Kareem Namek, Chief Financial Markets at Al Baraka Bank Egypt, emphasized the significance of the agreements. He highlighted that they underscore the bank’s dedication to delivering comprehensive, Sharia-compliant banking solutions that enable clients to engage in global trade with increased assurance and security. He noted that advanced insurance coverage such as this is central to the bank’s strategy for mitigating credit risks, expanding trade finance operations, and fostering sustainable long-term economic development. Mr. Namek further indicated that innovation and transparency in financial services are key to consolidating Al Baraka Bank Egypt’s leadership in the Islamic finance sector and contributing to both national economic goals and the broader Islamic banking landscape.

These agreements are expected to substantially enhance the capacity of Al Baraka Bank Egypt’s corporate and SME clients to expand their exports globally. By offering innovative financial instruments, the bank seeks to promote financial stability, attract international investment, and support sustainable development initiatives.

The collaboration aligns with the strategic vision of Al Baraka Bank Egypt and reinforces the ICIEC’s mission to facilitate trade and investment across the 57 member states of the Islamic Development Bank Group. Through the provision of Sharia-compliant insurance services, ICIEC actively contributes to key developmental areas, including food security, energy, transportation, and infrastructure.