ICIEC, Takaful Libya sign deal to boost Shariah-compliant export credit insurance

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group, has signed a facultative reinsurance agreement with Takaful Libya aimed at expanding Shariah-compliant export credit insurance in the North African country.

The agreement, sealed during the IsDB Group Day in Tripoli on Tuesday, is expected to strengthen Takaful Libya’s ability to underwrite export credit risks, giving local exporters broader protection against payment defaults while opening access to new markets.

Under the arrangement, ICIEC will provide reinsurance cover for selected transactions insured by Takaful Libya. Officials say the partnership will support Libyan exporters and banks engaged in cross-border trade, bolstering resilience in an economy still recovering from years of instability.

“This agreement reflects ICIEC’s mandate to de-risk trade across our Member States by empowering local partners,” said Dr. Khalid Khalafalla, Chief Executive Officer of ICIEC. “By extending export credit reinsurance capacity and know-how to Takaful Libya, we will help Libyan exporters safeguard their receivables, strengthen their competitiveness in global markets, and contribute to rebuilding national trade flows.”

General Manager of Takaful Insurance Company, Mr. Bashir Ali Khallat, described the deal as a milestone for Libya’s economy.

“For Libya, this agreement represents more than just a financial arrangement – it is a new avenue of opportunity, a platform to boost and promote our exports, and a stepping stone toward greater economic growth,” he said.

Beyond risk cover, the agreement will enable technical cooperation in underwriting, credit risk assessment, capacity building, and claims management. According to both institutions, the initiative will reinforce prudential requirements while expanding Takaful Libya’s product offerings for corporates and financial institutions.

The signing underscores the IsDB Group’s broader agenda of fostering trade and investment across its member states. Implementation of the deal is set to begin immediately, with priority given to high-impact export sectors aligned with Libya’s national development goals.