By Ayomide Otitoju
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-compliant multilateral insurer and member of the Islamic Development Bank (IsDB) Group, has signed a facultative reinsurance agreement with Takaful Libya. The signing took place during IsDB Group Day in Libya on 23 September 2025.
The agreement is designed to strengthen Takaful Libya’s capacity to underwrite Shariah-compliant export credit risks, supporting the growth of Libyan exporters and contributing to the country’s economic recovery. Under the arrangement, ICIEC will provide reinsurance for selected export transactions insured by Takaful Libya, enabling the insurer to extend broader coverage to companies and banks engaged in cross-border trade.
“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 receivables, strengthen competitiveness in global markets, and contribute to rebuilding trade flows in line with Libya’s development priorities.”
Bashir Ali Khallat, General Manager of Takaful Insurance Company, described the agreement as a “new avenue of opportunity” for Libya’s economy. “It is more than just a financial arrangement—it is a platform to boost and promote our exports and a stepping stone toward greater economic growth,” he said.
The partnership also provides for technical collaboration in underwriting, credit risk assessment, capacity building, and claims management. ICIEC’s support is expected to reinforce Takaful Libya’s offerings to corporates and financial institutions while ensuring stronger compliance with prudential standards.
The signing underscores the IsDB Group’s commitment to fostering partnerships that mobilize trade and unlock economic opportunities across its member states. Implementation of the agreement will begin immediately, with a focus on high-impact export sectors central to Libya’s recovery strategy.
