Direct investment insurance policy

The policy covers cross-border investments in Arab countries, including total project ownership, equity, and investment portfolios against political risks. The cover is provided for ten years, extendable to fifteen years. Dhaman pays 90% of the incurred loss.

The policyholder may reduce or cancel the coverage at any contract anniversary date.

Insured Risks

The insured investor is entitled to insure one or more risks for each policy period (one year).

CEN

Confiscation, Expropriation Nationalization, compulsory seizure, or any other action taken by the public authorities of the host Arab country that may reduce or eliminate ownership of, control over, or rights to the insured investment.

“Creeping” expropriation (continual restrictions of property rights that, over time, have an expropriation effect) is also covered.

Currency Inconvertibility and Transfer Restrictions

Direct or indirect measures or actions taken by the public authorities in the Arab host country that restrict the investor’s ability to convert local currency received from the insured project (profits, capital, interest) into foreign exchange for transfer outside the host country or to transfer foreign exchange to outside the host country.

Political Violence

Acts of war emanating from a foreign entity or the host country, or civil disturbance in the host country, including revolutions, coup d’états, insurrections, terrorism, or sabotage which directly damage or destroy the tangible assets of the insured project or result in an interruption of the insured project operations essential to its financial viability.

Breach of Contract

The inability of the investor to enforce an award rendered in his favor against the Arab host country under a breach or repudiation of a contract.

Eligibility

Eligible Investments

New Arab and non-Arab cross-border investments modernization or expansion of existing investments Equity and Portfolio investments

Eligible Investors

Nationals of a country other than the Arab host country. Arab expatriates investing in their home countries, provided the invested funds are transferred from outside their home countries.

Procedure

1

Preliminary Insurance Application

The investor submits a free of charge Preliminary Insurance Application to insure a new or an existing investment

2

Dhaman provides the applicant with a non-binding indication detailing the scope of cover and the pricing

Non-Binding Insurance Quotation

3

Final Insurance Application

Once the NBI is accepted and the investment and financing plans are established, a definitive application for which a fee is charged is submitted along with the project documentation

4

Obtaining the approval of the host country is necessary for Dhaman to issue the insurance policy

Host Country Approval

End

Contact Us

Nizar Najem,
Head of Investment Guarantee Unit

Phone

+965 24959536 (Direct)

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