The Egyptian unit of the Bahrani-owned Islamic lender Al Baraka, Al Baraka Bank Egypt, has signed two main agreements with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), totalling $100mn, aimed at enhancing Islamic trade finance and supporting exporters, Amwal Al Ghad reported on July 21.
The first agreement, a $50mn credit insurance policy, is designed to support export transactions by covering letters of credit issued in favour of large, small, and medium-sized Egyptian (SMEs) exporters. The policy mitigates non-payment risks by foreign banks, helping exporters expand into new markets and grow their cross-border trade with greater confidence.
The second agreement, a $50mn general bank insurance policy, provides coverage for future Islamic trade finance transactions that Al Baraka Bank may undertake.
The agreements were signed by Khaled Khalfallah, CEO of ICIEC, and Ahmed Atiya, Head of Financial Institutions at Al Baraka Bank Egypt.
Karim Namek, CEO of Capital Markets at Al Baraka Bank Egypt, said that these agreements demonstrate the bank’s commitment to offering integrated Sharia-compliant financial solutions. He added that the insurance coverage significantly reduces credit risk and supports the expansion of foreign trade financing.
The strategic deals will empower Al Baraka Bank’s customers to access international markets with greater security. The move also strengthens ICIEC’s role in fostering trade and investment among the 57 member countries of the Islamic Development Bank Group, particularly in sectors like food security, energy, transport, and infrastructure.
Established in 1980, Al Baraka Group has a presence in over 13 countries, including Egypt, Jordan, Turkey, Pakistan, and South Africa.
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