Loan insurance policy

The insurance policy covers financiers of investment and development projects in Arab countries against political risks. The tenor of the loan must exceed three years. The policy validity is concurrent to the repayment schedule of the loan and covers the principal amount plus the interest. Dhaman compensates the insureds with an average rate of 90% of the loss value.

Insured Risks

The Loan provider is entitled to insure one or more risks for the contract period

CEN

Confiscation, Expropriation Nationalization, compulsory seizure or any other action taken by the public authorities of the host country that may reduce or eliminate the capacity of the beneficiary project to reimburse the loan in principle plus interests

Currency Inconvertibility and Transfer Restrictions

Direct or indirect measures or actions taken by the public authorities in the host country that restrict the beneficiary project to convert local currency ( capital, interest) into foreign exchange for transfer outside the host country, or to transfer foreign exchange to outside the host country

War and Civil Disturbance

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 prevent the beneficiary project from reimbursing the loan

Eligibility

Eligible Loans

Cross-border loans provided to new investments or to modernize or expand existing investments

Eligible Lenders

Investors/Shareholders providing finance to a beneficiary project in Arab countries Financial Institutions offering project finance to a beneficiary project in Arab countries.

Procedure

1

Loan Insurance Application

The Loan provider submits a free of charge Insurance Application

2

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

Non-Binding Insurance Quotation

3

Host country approval

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

4

Dhaman provides the applicant with the insurance terms and conditions and the policy is signed

Issuance of the Insurance Policy

End

Contact Us

Nizar Najem,
Head of Investment Guarantee Unit

Phone

+965 24959536 (Direct)

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