ICIEC Partners With Al Baraka Islamic Bank To Enhance Shariah-Compliant Trade Finance Through New Credit Insurance Policy

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has partnered with Al Baraka Islamic Bank BSC Bahrain to launch a Documentary Credit Insurance Policy (DCIP). This initiative aims to bolster Shariah-compliant trade finance by providing enhanced security and confidence in international trade. The policy covers Letters of Credit (LCs) issued by Al Baraka Islamic Bank for eligible Shariah-compliant goods and services, mitigating payment risks in cross-border trade.

Dr. Khalid Khalafalla, CEO of ICIEC, expressed that this partnership with Al Baraka Islamic Bank aligns with ICIEC’s mission to advance intra-OIC trade and investment. "By supporting Shariah-compliant trade finance through our Documentary Credit Insurance Policy, we are facilitating secure trade flows while empowering Islamic banks to broaden their offerings to clients," he stated.

The DCIP is crucial for Islamic banks as it enhances their capacity to expand trade finance operations while reducing exposure to commercial and political risks. This policy aligns with ICIEC’s broader goals of promoting economic resilience, financial inclusion, and private sector growth in member countries. Both organisations are committed to extending the reach of Islamic finance and strengthening risk mitigation tools.

Dr. Adel Salem, CEO of Al Baraka Islamic Bank BSC Bahrain, highlighted the significance of this collaboration. "We are delighted to partner with ICIEC on this pioneering credit insurance policy, which empowers us to extend Shariah‑compliant trade finance to our clients, bolster Bahrain’s role as a regional hub for Islamic banking, and stimulate sustainable economic growth across member states worldwide," he said.

This partnership underscores a commitment to innovation and robust risk management, providing businesses with greater confidence to expand globally. The DCIP not only supports sustainable growth but also complements ICIEC’s mandate by promoting inclusive economic development within its member states.

The collaboration between ICIEC and Al Baraka Islamic Bank reflects a shared dedication to advancing the scope of Islamic finance. By enhancing risk mitigation tools and fostering sustainable economic development, both institutions aim to contribute significantly to the global market landscape.

With inputs from SPA