"Dhaman" Signs Two Trade Finance Insurance Contracts with Leading International Banks Supporting a USD 100 Million Financing for Trafigura

The Arab Investment & Export Credit Guarantee Corporation (Dhaman), specialized in trade, investment, and finance insurance, has signed two three-year contracts for trade finance insurance, supporting a bank financing with a total value of approximately USD 100 million. The contracts were concluded with Standard Chartered (SC), Sole Coordinator, Structuring Bank and Agent, as well as Sumitomo Mitsui Banking Corporation (SMBC). In a press release issued on the signing, held at Dhaman’s headquarters in Kuwait, the Corporation explained that Trafigura Group Pte. Ltd., a market leader in the global commodities industry, will benefit from the financing provided by the two banks. The funds will be used to support the export of Arab-origin goods and the import of strategic commodities into Arab countries. Under the terms of the contracts, Dhaman — established in 1974 as a joint Arab institution owned by Arab governments alongside four Arab financial institutions — will provide insurance coverage for the credit facilities extended by the two banks. The statement noted that the product had been introduced several months earlier as a new insurance offering, reflecting Dhaman’s commitment to continuously enhance its product portfolio to keep pace with evolving market needs and customer requirements. It also aligns with international standards, including the Basel III Accord. Dhaman emphasized that its trade finance insurance services contribute significantly to the development of Arab economies by supporting exports, securing essential imports, and facilitating the execution of development projects under favorable terms, through risk mitigation and compensation in the event of covered losses. In this context, the Corporation — which holds an A+ credit rating from S&P Global — welcomed the signing of the two agreements. It reaffirmed its commitment to increasing the benefits that Arab member states derive from its insurance operations and activities, with a strategic focus on the sectors of investment, trade, and finance. This approach aims to enhance Dhaman’s role in supporting the economic growth of its member countries. Commenting on the transaction, Rashed Ahmed Al-Haroun, Director General of Dhaman, said: “These agreements reflect Dhaman’s strong commitment to supporting intra-Arab trade and enhancing the ability of financial institutions to fund trade flows amidst current global challenges. By providing advanced credit risk insurance coverage, we help facilitate the flow of strategic commodities into Arab markets and enable international partners to operate with greater confidence in the region. We are proud of this high-impact partnership with two world-class banks – Standard Chartered and SMBC – which further strengthens Dhaman’s position as a key player in the regional investment and credit insurance landscape". Abbas Husain, Global Head of Infrastructure and Development Finance at Standard Chartered, said: “With a long-standing presence across the Middle East and a deep understanding of local markets, Standard Chartered leverages its global network to support clients across key trade corridors. Our collaboration with Dhaman combines international reach with on-ground expertise, enabling us to structure effective, risk-managed financing solutions that facilitate trade and contribute to the region’s long-term economic resilience.” SMBC Edward Bullen, Head of Export and Development Solutions EMEA at SMBC, commented: “This transaction highlights our commitment to strategic trade flows from Dhaman member states. By leveraging Dhaman’s risk mitigation capabilities, we structured an efficient financing solution that adds real value to Trafigura’s business and supports essential global commodity flows.” James Murphy-O’Connor, Trafigura’s Head of ECA Finance, commented: “For Trafigura, this marks the first such financing transaction backed by a multilateral institution, representing a significant milestone that strengthens the company's trading relationships with Arab member countries.” About Trafigura Group Pte. Ltd.: Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. The Company deploys infrastructure, market expertise and its worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. The Group employs over 13,000 people, of which over 1,400 are shareholders and is active in over 150 countries. Conclusion: These agreements represent an advanced model of cooperation between Arab and international institutions in supporting trade and investment, highlighting the vital role that Dhaman plays in promoting sustainable economic development in the region. By providing innovative financial insurance tools that comply with international standards, these partnerships contribute to enhancing confidence in Arab markets, facilitating the flow of strategic commodities, and supporting the implementation of vital development projects. This strengthens the position of Arab countries as a key regional economic hub amid increasing global challenges.