Economic Institution: 7% increase in the value of commitments to secure investment and financing for the Arab region
The Arab Corporation for Guaranteeing Investment and Export Credit (Daman) announced an increase in the value of existing obligations to secure investment, financing and exports directed to the Arab region by a rate of 7% to about 260 billion dollars by the end of 2023, representing about 8% of the global total. So that the obligations were distributed between 83% for insuring export credit destined for the region, 8% for insurance against political risks (worth $22 billion), and 9% for other cross-border insurance operations.
< p>The Foundation stated – in a statement today, Sunday, on the occasion of the issuance of the third quarterly bulletin “Investment Guarantee” For the year 2024 – The global trade and investment environment faced during the year 2023 many challenges and risks that represented promising opportunities for the insurance industry against political and commercial risks, coinciding with the continuation of geopolitical tensions in the world and in the Arab region. Therefore, new operations to insure investment, financing, and exports directed to Arab countries (imports) witnessed an increase of 17% in 2023 to exceed $121 billion, bringing the percentage of insured imports to 9% of total Arab merchandise imports during the same year.
 
He added that in the context of the institution’s endeavor to study, follow up and monitor developments in the trade, investment and finance insurance sector globally and regionally in cooperation with the Berne Union, the sector’s performance data revealed There are a number of facts in the Arab region: The most notable of which is the increase in the share of Arab countries to 4% of the total new commitments to secure trade, investment and finance in the world during the year 2023.
Insuring credit for exports directed to Arab countries over various terms also continued to dominate. The largest share of new obligations was 88%, while the share of insurance against political risks was 4%, and about 9% for other obligations via Borders.
The new insurance obligations were geographically concentrated in 5 Arab countries, accounting for about 78% of the total, led by Saudi Arabia (28%), then the Emirates (23%), followed by Egypt. (13%), then Morocco (9%), then Algeria (5%).
General agencies for export credit insurance also continued to account for the largest share of the total new commitments. In the Arab region During the year 2023, with a share exceeding 62%, while private insurance agencies accounted for about 38% of the total. About 78% of the new commitments to secure export credit destined for the region in the medium and long term and to insure against political risks during the year 2023 are concentrated in 3 main sectors: infrastructure, energy, and manufacturing.
< p>Compensations paid for insurance obligations in the Arab region increased by 48% to reach about $713 million during the year 2023. This coincided with an increase in recovered compensation by 23% to reach $457 million. Most of the compensation paid for long-term insurance obligations was concentrated in the energy and infrastructure sectors, with a share exceeding 76%.
The statement stressed that in light of the continuing challenges resulting from the escalation of geopolitical tensions in several regions around the world, The corporation seeks to enhance its comprehensive capabilities in facing existing and potential political and economic challenges in the region, and is also keen to strengthen its alliances with the main regional and international players in the industry, especially the Berne and Aman unions and all concerned parties in the region and the world.
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It is noteworthy that the Arab Corporation for the Guarantee of Investment and Export Credit “Guarantee” It was established in 1974 and is headquartered in the State of Kuwait, as a multilateral institution whose membership includes all Arab countries and four joint Arab financial institutions. It provides specialized insurance services against credit and political risks with the aim of facilitating the flow of foreign direct investment to Arab countries and supporting Arab exports and imports.
