“Dhaman” seeks to neutralize the possible adverse impact of political and commercial risks on Arab economies

The Arab Investment & Export Credit Guarantee Corporation "Dhaman", explained that regional and global economic growth is contingent upon the evolution and growth of significant activities such as trade, financing and investment, which are liable to political, trade, financial and operational risks due to global political and economic events and crises that vary in severity and implications, depending on how, where and when they occur.

The Corporation develops its services to cope with its clients’ needs, industrial updates and market competition

Dhaman said in the editorial that the Arab region, over long decades, was the theater of several regional and international economic, political and military crises and conflicts, which reflected on regional economies, particularly relevant ones.

Dhaman noted that in an endeavor to neutralize the negative impact of these events on the ability of Arab countries to develop their economies, create their investment climate to draw foreign capital, upgrade their export capabilities, the Arab governments adopted an initiative in 1974 to establish the Arab Investment & Export Credit Guarantee Corporation (Dhaman) to provide two core services.

• Firstly, to insure investment, trade and financing in Arab countries against political risks such as expropriation, currency inconvertibility, wars and civil disturbances and breach of contracts, and commercial risks, including importers’ default or bankruptcy.
• Secondly, to provide consulting and research in order to improve and promote the investment, trade and business atmosphere through publications, conferences and other activities, in collaboration with decision-makers at concerned governmental, regional and private agencies.

Dhaman said that during the period from its inception to late 2023, Dhaman managed to offer its diverse insurance services to the Member States through hundreds of exporters, investors and financial institutions, with the cumulative value of its guaranteed operations having broken the $30.5 billion mark. Dhaman also published hundreds of annual reports, bulletins, studies and consultation papers, and organized scores of specialized conferences and events.

Dhaman vowed that based on Dhaman’s experience as the world’s first multilateral investment guarantor, good reputation, credit rating, high financial solvency, broad client base across the region and the world, firm partnership with local, regional and international insurers and reinsurers, watertight insight and the efforts of its leadership and staff, the Corporation would see further concentration on coping with its clients’ needs, industrial development and market competition. The ultimate goal is to fulfill the development expectations of the Member States, thus positively reflecting on the people of the Arab region.